Clear, honest marketing builds trust - and in Australia, it’s also the law.
Whether you run an online store, a professional services firm, or a growing franchise, what you say about your products and services matters. Section 29 of the Australian Consumer Law (ACL) sets strict rules about certain types of false or misleading representations made in trade or commerce. Breaches can attract significant penalties, even if you didn’t intend to mislead anyone.
In this guide, we’ll break down what Section 29 actually covers, common risk areas for everyday businesses, how to stay compliant without slowing down your marketing, and practical steps to put the right documents and processes in place so your team can promote your business confidently.
What Does Section 29 ACL Actually Prohibit?
Section 29 of the Australian Consumer Law (ACL) prohibits specific types of false or misleading representations made in trade or commerce in connection with the supply (or possible supply) of goods or services. It’s not limited to “consumer” audiences - it also applies to representations made to other businesses if the conduct is in trade or commerce.
While the ACL also has a broader, catch‑all rule against misleading or deceptive conduct (that’s Section 18), Section 29 pinpoints particular representations that are off-limits if they’re false or misleading. In practice, the same conduct can sometimes breach both provisions, but it’s important to understand Section 29 on its own terms.
Under Section 29, it’s unlawful to make false or misleading representations about, for example:
- Standard, quality, value or grade of goods or services.
- Composition, style, or model of goods, or whether goods are new.
- Performance characteristics, uses or benefits of goods or services.
- Approval, sponsorship, affiliation or endorsement (of your goods/services, or of your business).
- History or previous use of goods (e.g. “one owner”, “never used”).
- Place of origin of goods.
- Price of goods or services, or the need for any goods or services.
- Availability of facilities for repair of goods or spare parts.
- Testimonials - including whether they are genuine and based on real experiences.
- Existence, exclusion or effect of any condition, warranty, guarantee, right or remedy.
Also keep in mind: if you make a representation about future matters (for example, promising results or outcomes), you must have reasonable grounds for making it at the time. If you don’t, the representation may be taken as misleading under the ACL’s “future matters” rule.
Penalties for breaching Section 29 can be substantial. For companies, maximum civil penalties can reach into the tens of millions, and the regulator can also seek corrective advertising, compensation orders and other remedies. That’s on top of the reputational damage that comes with a public enforcement outcome.
Section 29 vs Section 18: What’s the Difference?
It’s common to hear Section 29 discussed alongside the general rule against misleading or deceptive conduct in Section 18. They’re related but not the same.
- Section 18 is broad: it prohibits conduct that is misleading or deceptive (or likely to mislead or deceive) in trade or commerce. It applies to a wide range of situations, even where no specific “representation” is identified.
- Section 29 is specific: it lists particular types of false or misleading representations that are prohibited. Many marketing claims fall squarely within these categories.
Why does this distinction matter? If your statement fits one of Section 29’s categories and it’s false or misleading, a court can find a contravention of Section 29 directly (and penalties apply accordingly). Conduct can also be challenged under Section 18. If you’re exploring the broader concept of misleading conduct, our overview of Section 18 and the elements of misleading or deceptive conduct is a helpful companion to this guide.
Common Risk Areas Under Section 29 (With Plain-English Examples)
Most businesses don’t set out to mislead anyone. Problems arise because a claim is overstated, important context is missing, or internal checks haven’t kept up with fast-moving campaigns. Here are everyday scenarios where Section 29 often becomes relevant.
If you say your product is “premium”, “medical grade”, “industrial strength” or “guaranteed to work”, you need a reasonable basis for that claim and evidence to back it.
- Performance claims: “Removes 99% of stains” implies specific, tested results. Keep test data and methodologies on file.
- Benefit claims: “Clinically proven” requires robust evidence - not just a few anecdotal reviews.
- Service outcomes: “We guarantee you’ll rank #1 on Google” is a red flag unless your guarantee terms are clear and true in practice.
2) “New”, Model, Composition or History
Labelling something as “new” when it’s refurbished, or describing goods as a “2024 model” when they are last year’s stock with minor updates, can mislead by suggesting a specification or release status that’s not accurate.
- Composition: Claims like “100% cotton” or “real leather” must be true, full stop.
- History: “Ex-display only” or “one owner” statements must reflect the actual use and ownership history.
3) Origin and “Australian Made” Claims
Origin claims are tightly scrutinised. Statements like “Made in Australia” or “Australian owned and made” have specific meanings and expectations. If substantial transformation didn’t occur in Australia, the claim may be misleading. Similar care is needed for regional provenance claims (e.g. food or wine regions).
Be careful with words like “official”, “partner”, “endorsed by” or “approved”. If you imply a relationship, make sure it exists and is current, and that you’re using the correct wording set by the sponsor or affiliate agreement. The same applies to using logos or seals in a way that suggests an approval you don’t have.
5) Price Representations
Price claims must be accurate and complete. If you display a “was/now” price, you need a reasonable basis for the “was” price. If additional mandatory fees or charges apply, don’t bury them - the headline price should not mislead. For pricing compliance more broadly, see our guide to advertised price laws in Australia.
6) Testimonials and Reviews
Testimonials must be genuine and not misleading. Don’t edit a review in a way that changes its meaning, and don’t present paid endorsements as independent opinions. If an influencer is a paid partner, that relationship should be clear.
7) Consumer Guarantees, Warranties and Rights
You can’t tell customers they have fewer rights than the law provides, or that they must pay for a remedy they’re entitled to under the ACL. If you offer an additional warranty, ensure your wording is accurate and consistent with your lawful obligations. If you provide a warranty against defects, you should have a compliant warranties against defects policy and the required wording in your customer materials.
How To Stay Compliant With Section 29 (Without Slowing Down Your Marketing)
Good compliance is about habits, not hurdles. These practical steps help you market confidently while managing risk.
- Audit your current claims: Review website content, ads, packaging, emails, social captions and product feeds. List all factual claims and check you have evidence for each.
- Keep substantiation on file: For performance claims, hold test results, research, supplier certifications and dates. For price claims, keep records showing the basis for the “was” price or discount period.
- Standardise approval workflows: Give your team a simple checklist to run before campaigns go live (e.g., evidence attached, disclaimers in place, prices accurate, relationships disclosed).
- Train your team and partners: Sales, customer support, social media managers and affiliates should all understand what they can (and can’t) say. Consider written influencer guidelines and require pre‑approval for key posts.
- Use clear, prominent qualifiers: If a claim needs context or limitations, don’t hide it in fine print. Qualifiers should be close to the claim and easy to understand.
- Monitor and correct quickly: If you discover an issue, fix it fast. Update the claim, notify affected customers where appropriate, and document the steps you took.
- Refresh regularly: Set a cadence to re-check evergreen pages, FAQs and product listings so older claims don’t linger after specs or terms change.
If you’re unsure about a borderline claim or a complex campaign, it’s a good time to get tailored legal guidance before launch. A short review can save weeks of remediation later.
Essential Legal Documents That Support Section 29 Compliance
Clear, tailored documents help align your marketing with your obligations and set accurate expectations with customers. Depending on how you operate, consider the following:
- Customer Contract or Terms & Conditions: The core terms for your sale or service. They should accurately reflect what you promise, what you exclude, and how refunds and remedies work. If you sell online, pair them with robust Website Terms and Conditions so rules for using your site are also clear.
- Privacy Policy: If you collect personal information (most businesses do), publish a compliant Privacy Policy explaining what you collect and how you use it. This supports transparency in your marketing and communications.
- Warranties and Returns: If you offer additional warranties, ensure the wording is consistent with the ACL and, where relevant, supported by a proper warranties against defects policy. Avoid statements that undercut consumer guarantees.
- Competition and Promotion Terms: For giveaways, sales and promotions, publish clear rules using fit‑for‑purpose competition terms and conditions to avoid misleading entries, prize descriptions or eligibility statements.
- Supplier and Influencer Agreements: Ensure your supplier specs, certifications and influencer disclosure obligations are captured in writing so you can rely on them when you make claims.
- Internal Marketing Policy: A short, practical guide that sets out approval steps, evidence requirements and how to handle endorsements or testimonials. It empowers your team to move quickly and safely.
These documents won’t replace good judgment, but they create guardrails so your promotions match your legal position. They also make it easier to resolve complaints early and professionally.
Section 29 sits within a wider framework that protects fair trading in Australia. A few adjacent rules often come up for growing businesses:
- Section 18 (Misleading or Deceptive Conduct): The general rule that covers a broad range of conduct in trade or commerce. If your conduct creates a false impression overall, you may face action under Section 18 even if no specific Section 29 category is triggered. For a refresher, read our guide to Section 18.
- Price Display and Comparison: When advertising “was/now” pricing, discounts or limited-time offers, ensure your pricing practices are accurate and supported. Our overview of advertised price laws covers common traps.
- Unconscionable Conduct and Other Protections: The ACL also prohibits conduct that takes advantage of vulnerabilities or is against good conscience in business dealings. If you’re exploring the wider ACL landscape, see our explainer on Section 21.
- Digital and Data Practices: If your marketing involves data collection, ensure your privacy posture matches your public statements. A transparent Privacy Policy and good data hygiene go hand‑in‑hand with ACL compliance.
Together, these rules encourage truthful promotions and clear communication. They’re not designed to slow you down - they’re designed to help you build trust at scale.
Practical Checklist: Building a Culture of Truthful Marketing
Here’s a quick, repeatable process you can embed into your workflow:
- List your claims: Extract the factual statements from your ads, product pages, packaging and scripts.
- Attach evidence: Link each claim to the underlying proof (lab test, certification, price history, supplier spec, contract).
- Add clear qualifiers: If a claim needs context (e.g. typical results, exclusions, time limits), add it in plain English near the claim.
- Review endorsements: Confirm testimonials are genuine and influencers disclose relationships as required.
- Check rights language: Make sure your customer-facing pages don’t understate ACL rights or overstate exclusions, and align with your Website Terms and Conditions.
- Record and refresh: Save dated screenshots and evidence. Revisit evergreen claims periodically or when products change.
Do this once, and each new campaign becomes a quick update - not a ground-up legal exercise.
Key Takeaways
- Section 29 of the ACL bans specific false or misleading representations made in trade or commerce about goods, services or your business (e.g. quality, origin, price, endorsements, testimonials, warranties).
- It is not limited to “consumers” only - it applies to representations made in connection with supply (or possible supply), including B2B contexts.
- Penalties can be significant, and the same conduct can also be challenged under the ACL’s broader misleading or deceptive conduct rule in Section 18.
- Manage risk by auditing your claims, holding evidence, using clear qualifiers, training your team and correcting issues quickly.
- Support compliance with clear customer terms, a visible Privacy Policy, accurate warranty and returns language, and strong promotion rules such as competition terms and conditions.
- Price representations and endorsements deserve extra care - align your practices with advertised price laws and ensure testimonials are genuine and fairly presented.
If you’d like a consultation on Section 29 ACL compliance for your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
