If you sell goods or services in Australia, the Australian Consumer Law (ACL) applies to you. It’s there to protect customers - and it also gives clear rules so businesses can trade confidently and fairly.
But we get it. The ACL can feel complex if you’re busy running a business. What do you need to include on your website? How do refunds work? What about marketing claims and discounts?
In this guide, we’ll walk you through the essentials in plain English so you can spot the issues that matter, protect your brand, and avoid costly penalties. We’ll also share the key documents and practical steps that help keep you compliant from day one.
What Is The Australian Consumer Law (ACL)?
The Australian Consumer Law is a national law that sets rules for fair trading and consumer protection. It covers things like truthful advertising, pricing, consumer guarantees, unfair contract terms and sales practices.
In practice, the ACL affects most day-to-day business activities - your website copy, social media posts, discounts, receipts, returns, customer service scripts and even the terms you use in standard form contracts.
The ACCC and state/territory fair trading regulators enforce the ACL. Breaches can result in infringement notices, enforceable undertakings, court action, corrective advertising and substantial penalties. Getting it right early is far cheaper than fixing it later.
Who Does The ACL Apply To And When?
Almost all businesses that supply goods or services in Australia need to comply with the ACL - whether you trade online, from a physical store or both.
Someone is considered a “consumer” under the ACL if they buy:
- Goods or services priced at $100,000 or less, or
- Goods or services usually bought for personal, domestic or household use, or
- A vehicle or trailer for use primarily to transport goods on public roads.
Importantly, many small businesses are consumers too when they buy products and services for their operations. That means your business can be protected by the ACL as a buyer, and also responsible for obligations as a seller.
If you sell to other businesses on your standard terms, the ACL can still apply - especially around misleading conduct and unfair contract terms. So, even B2B suppliers should assume ACL compliance is essential.
Key Obligations You Must Meet Under The ACL
Below are the ACL areas we see catching businesses out most often. Each one is core to trust with your customers - and to staying on the right side of the law.
Misleading Or Deceptive Conduct (Section 18)
You must not engage in conduct that is likely to mislead or deceive. This covers everything a customer sees or hears - website copy, packaging, social posts, point‑of‑sale materials, emails, sales calls and staff claims.
Even if you didn’t intend to mislead, the question is whether your conduct is likely to mislead in context. If in doubt, clarify, qualify or remove the claim. A short footnote or an asterisk isn’t always enough if the headline creates the wrong overall impression.
For a deeper dive into this rule, see Section 18.
False Or Misleading Representations (Section 29)
Specific types of claims are singled out as unlawful - for example, false claims about price, quality, features, performance characteristics, testimonials, or that a product is made in a particular place. If you’re making a concrete, factual claim, make sure you can substantiate it quickly.
If you run “was/now” promotions or comparative ads, keep records to prove the comparison is genuine and not a bait tactic. Details matter here.
Explore the list of prohibited claims in Section 29.
Unconscionable Conduct (Section 21)
Businesses must not act in a way that’s harsh or oppressive - particularly when there’s a clear imbalance in bargaining power (for example, with vulnerable customers or micro‑businesses). Hard selling techniques, unfair pressure and taking advantage of understanding gaps can all cause problems.
Learn what regulators look for under Section 21.
Consumer Guarantees & Remedies
Customers are entitled to certain guarantees - goods must be of acceptable quality, match descriptions, be fit for purpose and comply with any express warranties. Services must be provided with due care and skill and within a reasonable time.
If a product or service doesn’t meet a consumer guarantee, customers are entitled to a remedy (repair, replacement, refund or repeat service). The type of remedy depends on whether the problem is “major” or “minor.”
If you offer a written voluntary warranty, it needs specific wording and disclosures under the ACL. A tailored Warranties Against Defects Policy helps ensure you’re using compliant language and remedy timeframes.
Pricing, Discounts And Drip Pricing
Display prices must be accurate and not misleading. If you promote a price, it should include all mandatory components a customer must pay (e.g. unavoidable fees and charges), or you must clearly and prominently disclose how additional fees work before purchase.
“Drip pricing” (revealing unavoidable charges late in the checkout) can be misleading. If you use surcharges, subscriptions or tiered pricing, be clear upfront about what applies and when.
See common pitfalls in Advertised Price Laws.
Sales Practices, Cooling‑Off And Unsolicited Sales
Door‑to‑door or telemarketing sales are subject to stricter rules, including permitted contact times, formal disclosure requirements and cooling‑off periods. Don’t take payments or supply goods/services during the cooling‑off period in those scenarios.
Online promotions and limited‑time offers should still be accurate, time‑boxed and supported by stock or capacity - otherwise, you risk bait advertising concerns. If you collect deposits, ensure your “non‑refundable” terms are fair and clearly explained.
Do Online Stores Have Extra ACL Responsibilities?
Your online store is a “shopfront” under the ACL - so all the same rules apply. But there are extra risk areas to manage because you’re relying on digital content and automated processes.
- Website Copy And Claims: Product pages, banners, comparison tables, FAQs and testimonials must be accurate and not misleading. Use clear disclaimers, but don’t rely on a fine‑print fix for a bold headline.
- Checkout UX And Fees: Avoid drip pricing and set out shipping, handling, surcharges and subscription renewals upfront before customers commit.
- Email And SMS Marketing: Make sure your campaigns are truthful, include the right consent and opt‑out features, and don’t use misleading subject lines or “from” names.
- Data And Privacy: If you collect personal information for orders, accounts or marketing, you’ll need a compliant Privacy Policy that explains what you collect, why and how you use and store it.
- Terms And Returns: Provide clear Terms & Conditions covering ordering, delivery, returns, refunds and warranty processes, drafted to reflect ACL rights (not limit them).
The best approach is to build compliance into your product pages, cart, emails and policies - not bolt it on later. This improves conversions and reduces dispute risk.
How To Build ACL Compliance Into Your Business
Here’s a practical way to embed ACL compliance into everyday operations without slowing your team down.
1) Map The Customer Journey
List every touchpoint: ads, social posts, your website, checkout, order confirmations, packaging, delivery, returns emails and support scripts. Each touchpoint should be accurate, fair and consistent. If a claim appears in one place, make sure it’s properly supported everywhere else.
2) Refresh Your Customer-Facing Policies
Align your returns and refunds page, warranty wording and customer service scripts with the ACL. If you offer a voluntary warranty, use compliant “warranty against defects” wording and timeframes. A tailored Warranties Against Defects Policy is a simple way to standardise this.
3) Standardise Your Contracts
If you use standard form contracts (think sign‑up forms, online terms or template service agreements), review them for unfair terms. Clauses that create a significant imbalance and aren’t reasonably necessary are at risk - for example, unilateral variation rights or broad termination rights without similar rights for the customer.
A focused UCT Review helps identify and re‑draft high‑risk provisions while keeping your commercial position strong.
4) Update Website And Marketing Copy
Sense‑check bold claims, strike‑through discounts, RRP references and testimonials. Make sure specifics (numbers, timeframes, capacities) can be substantiated. Where appropriate, add clear qualifications that are close to the claim (not buried elsewhere).
5) Train Your Team
Sales, marketing and support teams should know the basics: don’t overstate features, be honest about timeframes, stick to approved wording for returns and warranty promises, and escalate tricky complaints early.
6) Keep Good Records
Keep evidence of claims and promotions (e.g. screenshots, pricing records, supplier specs, testing results) so you can substantiate them quickly. Good records also help you resolve disputes faster.
What Legal Documents Help You Stay Compliant?
The right documents make ACL compliance practical and repeatable. They also give your team clear scripts and rules to follow.
- Website Terms & Conditions: Sets the rules for using your site and how you supply goods or services online, including ordering, delivery, risk and liability (drafted to align with the ACL).
- Customer Terms (Online Store Or Services): A plain‑English contract for purchases or services that explains inclusions, exclusions, timeframes, remedies and complaint handling.
- Privacy Policy: Required if you collect personal information; explains collection, use, disclosure, storage and security. A compliant Privacy Policy also builds customer trust.
- Warranties Against Defects Policy: Sets out your voluntary warranty wording, mandatory ACL disclosures and remedy processes in a compliant way - see Warranties Against Defects Policy.
- Disclaimer: Clarifies limits or assumptions for general content (e.g. blogs or educational materials) without cutting across non‑excludable ACL guarantees.
- Competition Terms: Rules for giveaways, ensuring claims (odds, prizes, timeframes) are accurate, fair and consistent with the ACL and state regulations.
- Standard Form Contract Review: A targeted UCT Review to remove or rebalance terms regulators consider unfair.
Not every business needs everything on this list, but most will need several of these documents customised to their operations, products and sales model.
Common ACL Risk Areas For Small Businesses
These are issues we frequently see in audits and disputes. A quick check now can prevent headaches later.
- “Was/Now” And Limited‑Time Deals: Ensure the “was” price was genuine for a reasonable period and the discount window is real. Keep records.
- Testimonials And Reviews: Don’t cherry‑pick or edit in a way that misleads. Avoid incentivising only positive reviews. If a review is fake or defamatory, there are legal options for fake Google reviews, but prevention is best.
- Comparative Claims: “Best”, “#1”, “fastest” and similar superlatives need robust evidence. Prefer precise, verifiable claims.
- Prepayments And Deposits: If deposits are “non‑refundable”, be upfront about what that means, why and when it applies. The term should be fair in context, not a penalty.
- Subscriptions And Auto‑Renewals: Clearly explain billing cycles, renewal dates, cancellation windows and any minimum terms before sign‑up and in renewal notices.
- Delivery Timeframes: If you advertise timeframes (“ships in 24 hours”, “delivery in 3-5 business days”), meet them or clearly qualify them (for example, peak periods or remote locations).
- “Free” Offers With Conditions: Make conditions obvious and near the claim, not in a separate page of fine print.
Key Takeaways
- The ACL applies to most Australian businesses and covers everyday activities - ads, websites, pricing, sales scripts, complaints and contracts.
- Core rules include misleading or deceptive conduct, false or misleading representations, unconscionable conduct, consumer guarantees and fair sales practices.
- Online stores should pay special attention to claims, checkout pricing, subscription renewals, returns processes and a compliant Privacy Policy.
- Build compliance into your customer journey: align policies, standardise contracts with a UCT review, train your team and keep good records.
- Key documents like Website Terms & Conditions, Customer Terms, and a Warranties Against Defects Policy make consistent compliance practical.
- When in doubt about a claim, price display or warranty wording, it’s safer (and cheaper) to get it checked before you publish.
If you’d like a consultation on your Australian Consumer Law obligations and the documents you need, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.
