Small business marketing
Advertising rules
for small business.
Under the Australian Consumer Law, what counts is the overall impression your ad gives, and the ACCC says it makes no difference whether you meant to mislead. Show the total price, keep 'was' prices genuine, make 'free' actually free, and never suggest customers have fewer rights than the law gives them. Marketing texts and emails need consent, your details and an easy unsubscribe. This is a marketer's summary, not legal advice.
The one test
behind most rules.
The ACCC's guidance on false or misleading claims keeps coming back to one question: is the overall impression accurate? Fine print and qualifications must not conflict with the main message. Saying nothing can mislead too, if you know something the customer needs to know. And intent doesn't matter.
There's still room for personality. The ACCC says wildly exaggerated, vague claims nobody would take seriously are generally not misleading, with 'best steaks on earth' as its own example. 'Best coffee in Terrigal' is puffery. 'Voted No.1 cafe in Terrigal' is a claim of fact, and you need the vote to back it.
Small businesses aren't exempt, and the ceiling is high. For breaches from 10 November 2022, maximum penalties are the greater of $50 million, three times the benefit or, if the benefit can't be worked out, 30% of adjusted turnover during the breach period for companies, and $2.5 million for individuals.
Check your
ad wording.
Paste the words from an ad, a flyer, a social post or a web page. The scanner looks for the phrases that usually need a second look and says what the rule is. It reads words, not context, so a flag means 'check this', not 'this is illegal'.
Ad wording scan
Which words need
a second look?
Paste the words from your ad, flyer, post or web page. The example is made up. It's a marketer's checklist, not legal advice.
It reads words, not meaning. 'Free' in 'free parking out the front' will still be flagged.
Words to check
0
Prices,
sales and stock.
Show the total price as a single figure, including unavoidable fees you can work out. If you show a part price, such as '$29 a week', the total must be at least as prominent. If two prices are shown for the same thing, even by mistake, you must sell at the lower one or stop selling it until the price is fixed.
A 'was' price must be one you actually charged for a reasonable period right before the sale. And if you advertise a special, you need a reasonable quantity at that price for a reasonable time, or it can be bait advertising. The ACCC's own example: 'today only' means you don't need stock tomorrow.
'Free', refunds
and guarantees.
The ACCC says products offered 'free' where, on a closer look, conditions apply can be misleading. If there's a catch, such as a minimum spend or a lock-in, it belongs next to the word 'free', not three clicks away.
Consumer guarantees apply whatever your sign says. The ACCC names a 'no refunds' sign and saying you aren't responsible for problems as ways businesses mislead customers about their rights. Its 2025 sweep of more than 2,000 retail websites flagged wording such as 'sale items cannot be returned, exchanged or refunded'. You can offer extras on top, like a longer warranty. You can't offer less.
Green claims and
'Australian made'.
Environmental claims get extra attention. The ACCC's final guidance from December 2023 sets out eight principles, starting with accurate claims backed by evidence and avoiding broad, unqualified ones. 'Eco-friendly cleaning' is broad. 'We refill your bottles in store and our packaging is recycled cardboard' is specific and checkable.
'Made in Australia' has a defined meaning: the last substantial step in making the product happened here, and it changed the product fundamentally from its imported parts. 'Product of Australia' goes further: the main ingredients come from here and almost all the processing happens here. Putting imported candles into a box printed in Newcastle doesn't make them Australian made.
Texts, emails
and calls.
Marketing emails and SMS need consent, accurate sender details and an easy unsubscribe, and unsubscribe requests must be honoured within five working days. Inferred consent only works in limited cases, so ask, and keep a record of who said yes.
Cold calls are separate. Before calling numbers for marketing, check them against the Do Not Call Register, which offers a service to 'wash' your list. Customer details matter too: many businesses under $3 million turnover aren't covered by the Privacy Act, but health service providers and businesses that trade in personal information are, whatever their size. Selling or swapping customer lists is where that catches people.
What changes
in July 2027.
The Unfair Trading Practices Act received Royal Assent on 6 July 2026 and starts on 1 July 2027. For consumer sales it bans drip pricing, so mandatory fees must be shown with the base price, and it adds subscription rules: clear disclosure up front, reminders at key points, and easy cancellation, online if the customer signed up online. The subscription rules also protect small business customers on standard form contracts.
A general ban on unfair trading practices starts the same day. It targets conduct that manipulates customers or unreasonably distorts their decision, with examples like hiding material information or creating unreasonable pressure. A countdown timer that resets on every visit is the kind of tactic worth retiring now, not next June.
What I see most often
What I'd check first
in a small business's ads.
- 1
'Free' with a catch
A 'free quote' or 'free trial' where the conditions only appear on the booking page.
- 2
Refund wording from a template
'No refunds on sale items' in the website terms, often copied from another site years ago.
- 3
Weekly prices with no total
'From $19 a week' in an ad, with the total cost nowhere near it.
The honest bit. These rules don't stop good marketing. They stop the shortcuts that win one sale and lose the next ten. If a claim makes you hesitate, it will make customers hesitate too. For anything that could cost real money, ask a lawyer: this page is a marketer's summary, not legal advice.
Questions
people ask.
What counts as misleading advertising in Australia?
Any claim that creates a false overall impression, including through fine print or by leaving something out. The ACCC says intent doesn't matter.
Can I put up a 'no refunds' sign?
No. The ACCC says consumer guarantees can't be taken away by a 'no refunds' sign, and suggesting otherwise misleads customers about their rights.
Do I have to show the full price in ads?
Yes. The ACCC says to show the total price as a single figure, including unavoidable fees, at least as prominently as any part price.
When can I say 'Australian made'?
When the last substantial step in making it happened in Australia and changed it fundamentally from its imported parts. Packing or labelling it here isn't enough.
What are the penalties for misleading advertising?
For companies, up to the greater of $50 million, three times the benefit or, if that can't be worked out, 30% of adjusted turnover during the breach, and up to $2.5 million for individuals, for breaches from 10 November 2022.
Related
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