The ACCC Is Watching: How Misleading Health Claims Are Landing Australian Businesses in Court

The Australian Competition and Consumer Commission does not just regulate big corporations. It actively pursues businesses of all sizes that make misleading claims, and health advertising is squarely in its sights. In 2024, total fines and penalties from ACCC enforcement actions exceeded $500 million. If you are making claims about your health product or service that you cannot substantiate, the question is not whether the ACCC will notice. It is when.

The Law Is Straightforward

Section 18 of the Australian Consumer Law (ACL) prohibits misleading or deceptive conduct. Section 29 specifically prohibits false or misleading representations about goods and services. These provisions apply to every business in Australia, regardless of size.

The test is simple: could a reasonable consumer be misled by your claim? Intent does not matter. If your ad creates a false impression, even unintentionally, you may be in breach. Ignorance of the law is not a defence.

For breaches that occurred after November 2022, the maximum penalty is the greater of $50 million, three times the value derived from the breach, or 30 per cent of the company's turnover during the relevant period. For smaller infringement notice matters, penalties reach up to $93,900 per notice for corporations and $18,780 for individuals.

Health Claims That Trigger Enforcement

The ACCC has consistently targeted health-related advertising claims. The types of claims that draw attention include:

Unsubstantiated efficacy claims. Saying your product "relieves pain" or "boosts immunity" without clinical evidence to back it up. General wellness language is safer, but specific therapeutic claims require substantiation.

Misleading endorsements. Claiming your product is "endorsed" or "approved" by a government body or regulatory scheme when it is not. In 2025, Bedshed Franchising paid $39,600 in penalties for advertising products as "NDIS approved" when they were not. Thermomix paid $79,200 for similar misleading NDIS endorsement claims.

Deceptive pricing. Advertising a "regular price" that was never actually charged, or failing to disclose the true cost of a treatment or product.

Misleading comparative claims. Claiming your product is superior to competitors without evidence. The Nurofen case remains a landmark: Reckitt Benckiser was fined $6 million for marketing identical ibuprofen products as targeting different types of pain.

The Enforcement Machine Is Getting Bigger

The ACCC achieved 35 ACL and industry codes interventions in 2024 alone, including 9 court cases, 10 infringement notice matters, and 16 court-enforceable undertakings.

Notable 2024 to 2025 enforcement actions include Qantas paying $100 million for misleading consumers about cancelled flights, EnergyAustralia paying $14 million for misleading energy price claims, and Secure Parking paying almost $11 million for false claims about booking services.

These headline cases set the tone. The ACCC uses large penalties against big companies to signal its priorities, and those signals flow down to enforcement against smaller businesses.

The ACCC's 2025-26 enforcement priorities specifically include misleading conduct in digital platforms and online advertising. Health businesses advertising online are operating in exactly the space the ACCC is watching most closely.

The Overlap with TGA and AHPRA

Health businesses face a triple regulatory threat. The ACCC enforces the Australian Consumer Law. The TGA enforces the Therapeutic Goods Act and Advertising Code. AHPRA enforces advertising rules for registered health practitioners.

A single advertisement can breach all three frameworks simultaneously. A physiotherapist who claims their treatment "cures" a condition could face ACCC action for misleading conduct, TGA action if the claim relates to a therapeutic good, and AHPRA action for creating unreasonable expectations.

MinterEllison noted in their 2024 analysis that regulators are increasingly coordinating their enforcement efforts. A complaint to one body can trigger investigation by another.

How to Keep Your Advertising Honest

Compliance is not complicated, but it requires discipline.

Substantiate before you publish. Have evidence ready for every performance, savings, or comparative claim before the ad goes live. Use reliable, current data and keep records.

Use precise language. Say "may help support" rather than "cures" or "treats." Avoid absolute claims like "guaranteed results" or "100% effective" unless you have irrefutable clinical evidence.

Do not imply endorsements you do not have. If your product is not explicitly approved or endorsed by a specific body, do not suggest otherwise. "Meets TGA requirements" is very different from "TGA approved."

Check your ads before publishing. AdProof analyses your ad creative for potential compliance issues across TGA, ACCC, AANA, and Meta standards. Catching a misleading claim before it goes live is infinitely cheaper than defending one after an ACCC investigation.

Prevention Is the Only Strategy

The ACCC does not negotiate. When it identifies misleading conduct, the process is enforcement, penalties, and public disclosure. Your business name will appear in a media release alongside the fine amount.

The businesses that avoid this outcome are the ones that build honest advertising practices into their workflow. Check every claim. Substantiate every benefit. Review every ad before it launches. In a regulatory environment this active, prevention is not just the best strategy. It is the only one.