If you’re running a small business, your marketing, sales conversations, website copy and customer communications are all part of your brand.
They’re also where legal risk can creep in - often without you realising it.
One of the most important rules to understand is section 18 of the Australian Consumer Law (often shortened to s 18 of the ACL). This is the key provision that prohibits misleading or deceptive conduct in trade or commerce.
The reason section 18 matters so much is that it applies to almost every business, across almost every industry, and it can be triggered by everyday things - an ad headline, a “limited time” claim, a product photo, a customer DM, a quote you send, or what your staff say on the phone.
Below, we’ll break down what section 18 of the Australian Consumer Law means in plain English, what it covers, where small businesses commonly get caught out, and what you can do to reduce risk while still marketing confidently.
What Is S 18 Of The Australian Consumer Law (And Why Does It Matter For Small Businesses)?
S 18 of the Australian Consumer Law says a business must not, in trade or commerce, engage in conduct that is misleading or deceptive (or likely to mislead or deceive).
There are a few practical points hidden inside that wording:
- “In trade or commerce” means it’s about your business activities - advertising, selling, quoting, negotiating, onboarding, after-sales support and so on.
- “Conduct” is broad. It’s not just what you say. It can include what you don’t say, how you present information, images, demonstrations, comparisons, pricing displays, and even the overall “impression” your messaging creates.
- “Likely to mislead” means you can be at risk even if nobody has complained yet, and even if you didn’t intend to mislead.
For small businesses, the big takeaway is this: section 18 isn’t just about obvious scams. It’s also about whether a reasonable customer might walk away with the wrong understanding after engaging with your business.
That’s why it often comes up in disputes about:
- advertising and promotions
- online store product descriptions
- service deliverables and timelines
- pricing and “from” claims
- refunds, warranties and after-sales promises
- comparisons with competitors
If you’re unsure how your customer-facing communications stack up, it can be worth getting a second set of eyes from a consumer lawyer, particularly before you scale paid ads or roll out a major campaign.
What Counts As “Misleading Or Deceptive Conduct” Under S18 Of The ACL?
The Australian Consumer Law doesn’t give a single neat definition that covers every scenario, because misleading conduct can take many forms. Instead, section 18 is designed to be flexible and apply to real-world business behaviour.
In practice, your conduct might be misleading or deceptive if it:
- leads customers to believe something that isn’t true
- creates a false impression overall (even if individual statements are technically accurate)
- omits key information in a way that causes misunderstanding
- uses unclear qualifications or “fine print” that doesn’t correct the main message
It’s Not Just What You Say - It’s The Overall Impression
A common trap for businesses is focusing on whether the words are “true” in a narrow sense, while overlooking the bigger picture.
For example, a claim might be technically correct, but if the layout, imagery, headline, or context pushes customers toward the wrong conclusion, you may still have a problem under s 18 of the Australian Consumer Law.
You Don’t Need Intention To Breach S18 Of The Australian Consumer Law
Many business owners assume misleading conduct is only an issue if someone deliberately lies. But s 18 of the ACL is not limited to intentional behaviour.
You can be acting in good faith and still risk breaching section 18 if a customer is likely to be misled by what you publish or say.
Silence Can Mislead
Sometimes the issue isn’t an outright claim - it’s what you didn’t clarify.
Depending on the circumstances, leaving out important information can be misleading. This can be especially relevant where your message (or what you know about the customer’s understanding) means a reasonable customer is likely to take away an incorrect assumption about things like scope, inclusions, timing or limitations.
Common S 18 Risk Areas In Real Life (Marketing, Pricing, Sales And Product Claims)
To stay compliant with s 18 of the Australian Consumer Law, it helps to focus on the “hot spots” where small businesses are most exposed.
Social media marketing is fast-moving, and that’s exactly why it can be risky. Claims like “best”, “number one”, “guaranteed results”, “instant approval”, or “cures” can cause issues if you can’t back them up or if they create an unrealistic expectation.
If you’re running ads, your landing page matters too. The headline and the fine print should match. If you want to qualify a claim, the qualification should be clear and prominent - not hidden at the bottom in tiny text.
When you want to reduce the risk of a campaign (without watering it down), a website copy review can help you test whether your messaging is likely to create a misleading overall impression.
2. Pricing Displays And “From” Pricing
Pricing is one of the biggest sources of complaints because it’s where customers feel the impact immediately.
Common section 18 issues include:
- advertising a low “from” price that almost nobody can actually access
- failing to disclose compulsory fees until checkout
- showing a discount compared to an inflated “was” price
- using unclear pricing units (per hour vs per project, per person vs per booking)
As a general rule, if the average customer would expect a price to include something (like unavoidable fees), it’s safer to be upfront from the start.
3. Product Descriptions, Photos And Demonstrations
For eCommerce and product-based businesses, what you show can be just as important as what you say.
Examples of potential section 18 problems include:
- photos that make a product look larger than it is (without clear dimensions)
- filters or edits that materially change colour or finish
- describing materials or features inaccurately (eg “leather” when it’s synthetic)
- implying compatibility (eg with devices/accessories) when it’s not actually compatible
This is where solid e-commerce terms and conditions can support your processes - but remember, terms don’t give you permission to mislead. They work best as part of a broader compliance approach (clear listings, clear checkout, clear after-sales communication).
4. “Guarantees”, Warranties And Refund Statements
Many small businesses accidentally create section 18 risk when talking about refunds and warranties.
For example, saying “no refunds” or “store credit only” can be problematic if it gives customers the impression they have fewer rights than they actually do under the Australian Consumer Law.
If you provide a voluntary warranty (sometimes called a “warranty against defects”), you also need to be careful how you describe it. The wording and presentation should not mislead customers about their rights.
For many product businesses, having a properly drafted warranties against defects policy is a practical way to communicate your additional warranty clearly and consistently.
5. Sales Conversations And Quotes (Including What Staff Say)
Section 18 of the Australian Consumer Law isn’t limited to ads and websites. It can apply to:
- what you tell a customer during onboarding
- what your staff say in-store or over the phone
- DMs and email conversations
- quotes, proposals and statements of work
A common scenario is where a customer says “So this includes X, right?” and your team says “Yes” casually - but the contract or scope doesn’t actually include it. That mismatch can drive disputes and refunds, and it can become a misleading conduct allegation.
How Can You Reduce The Risk Of Breaching S 18 Of The Australian Consumer Law?
You don’t need to stop marketing or become overly cautious. The goal is to market clearly, so customers understand what they’re buying and you reduce disputes.
Here are practical steps we often recommend to small businesses.
1. Make Your Key Claims Easy To Substantiate
If you’re making objective claims (eg “50% faster”, “rated 5 stars”, “Australian made”, “waterproof”), ask yourself:
- What evidence do we have for this?
- If a customer asked, could we show how we know it’s true?
- Is the claim true for all customers, or only in certain cases?
If it’s only true in certain cases, build that limitation into the claim itself, rather than relying on fine print.
2. Use Clear Qualifications (And Put Them Where Customers Will See Them)
Qualifications can be helpful, but only if they actually correct the impression your main message creates.
In other words: if your headline is loud, your qualification needs to be noticeable too.
For example, if your service turnaround time depends on customer response times, supplier lead times or approvals, say that upfront - not only inside a long FAQ page.
3. Align Your Marketing, Checkout And Contract Terms
A lot of section 18 disputes happen because your marketing says one thing, your checkout implies another, and your contract says something else.
To reduce that risk, do a “customer journey check” across:
- ads and social posts
- landing pages and product pages
- cart/checkout and invoices
- emails and onboarding communications
- terms, policies and customer contracts
If you find inconsistencies, fix the public-facing messages first. Your terms are important, but they may not fully protect you if the overall customer-facing message is misleading.
4. Train Your Team On “Safe Language”
If you have staff (or contractors) speaking to customers, basic training can go a long way.
Helpful habits include:
- avoiding absolute promises (“guaranteed”, “will”, “always”) unless it’s truly guaranteed
- explaining assumptions (“based on the information provided…”) where relevant
- confirming scope in writing after a call
- not guessing - checking and following up instead
This isn’t about scripting every interaction. It’s about reducing misunderstandings that can later look like misleading conduct.
5. Keep Records Of Key Representations
If a dispute arises, what matters is often: “What was represented to the customer at the time they decided to buy?”
Good record-keeping can include:
- saving versions of ads and landing pages
- keeping quote acceptance emails
- confirming inclusions/exclusions in writing
- documenting any custom arrangements
That way, you can respond faster and more confidently if a complaint escalates.
What Legal Documents Help With S18 Compliance (Without Killing Your Conversions)?
Strong documents won’t fix misleading advertising on their own, but they play an important supporting role. They help you set expectations clearly, reduce ambiguity, and handle complaints consistently.
Depending on your business model, you may want to consider the following.
Customer Terms And Conditions
Customer terms are particularly useful when you’re providing services or ongoing deliverables. They can clarify scope, timelines, exclusions, change requests and payment terms.
Many businesses implement these through business terms that apply to jobs, bookings or projects.
Online Store Terms
If you sell online, tailored online terms can support your returns process, delivery timeframes, order changes, subscriptions (if relevant), and dispute handling.
For online stores, e-commerce terms and conditions are a common starting point, particularly when you’re scaling marketing spend and want fewer “surprise” disputes.
Privacy Policy (Especially For Online Marketing)
If you collect personal information - even something as simple as email addresses for a newsletter - you should have a clear privacy policy that explains what you collect, why you collect it, and how it’s handled.
While privacy compliance is a separate area of law, it overlaps with section 18 risk in practice: unclear statements about how customer data is used (or vague consent language) can create complaints and reputational damage very quickly.
Warranty Documentation
If you offer any additional warranty (beyond the baseline consumer guarantees), your written warranty wording should be accurate and consistent with how your team speaks about it.
A properly drafted warranties against defects policy can help reduce confusion and ensure you’re not unintentionally misstating customer rights.
Website Copy And Marketing Review Processes
This isn’t a “document” in the traditional sense, but having a repeatable review process is one of the most cost-effective ways to lower risk under section 18 of the Australian Consumer Law.
For example, before you launch a campaign, you might check:
- Are all key claims true and supportable?
- Are qualifications clear and close to the claim?
- Does the checkout price match the advertised price?
- Does the offer match the terms and refund policy?
Where the stakes are higher (big launches, influencer campaigns, new product claims), a website copy review can be a practical step to reduce ambiguity before it turns into a dispute.
Key Takeaways
- S 18 of the Australian Consumer Law applies broadly to most business activities and prohibits misleading or deceptive conduct (including conduct that is likely to mislead).
- Misleading conduct is about the overall impression you create - not just whether individual words are technically true.
- Small businesses often run into section 18 issues through pricing displays, ads and social media claims, product photos/descriptions, and sales conversations.
- You can reduce risk by substantiating claims, using clear and prominent qualifications, aligning marketing with checkout and contracts, training staff on “safe language”, and keeping records of key representations.
- The right documents (like customer terms, online terms, a Privacy Policy and warranty wording) help set expectations and reduce disputes - but they work best alongside clear advertising and communication practices.
Note: This article is general information only and is not legal advice. If you want advice about your specific situation, consider speaking with a lawyer.
If you’d like a consultation on section 18 of the Australian Consumer Law and how it applies to your advertising, website or sales process, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
