Competition watchdog the ACCC is putting businesses on notice for problematic advertising practices which target participants in the National Disability Insurance Scheme (NDIS).
The ACCC has been working with the National Disability Insurance Agency (NDIA) and NDIS Quality and Safeguards Commission to identify advertising which may be in breach of the Australian Consumer Law.
The ACCC is actively investigating multiple NDIS providers for contraventions of the Australian Consumer Law and anticipates taking public enforcement action in the near future.
ACCC deputy chair Catriona Lowe said businesses must not make false representations regarding access to the NDIS, and consumers must be able to rely on statements being made by NDIS providers as being true and accurate.
Changes to the NDIS clarifying the supports that NDIS participants can and cannot spend their NDIS funding on came into effect on 3 October 2024.
“The ACCC is concerned that many businesses continue to advertise goods or services that appear on the list of ineligible supports in a way that suggests NDIS funding can be used to purchase them,” Lowe said.
“We are also concerned that many NDIS providers are claiming that certain products or services are ‘NDIS approved’, ‘NDIS funded’ or otherwise NDIS endorsed when this is not the case.
“When NDIS participants are induced into buying support goods or services that are not claimable under their plans, they can be left with substantial personal debts. These participants may also be experiencing financial hardship or vulnerability and may not have the means to pay for these goods and services.
“NDIS providers should be aware that we are closely monitoring and responding to how they advertise their products and services to consumers, and that we will not hesitate to take appropriate enforcement action if we consider advertising is false or misleading.
“All businesses supplying goods and services to NDIS participants should urgently review their advertising and ensure they are acting in compliance with the Australian Consumer Law.”
Examples of concerning advertising that may be false or misleading include:
- The use of the words ‘NDIS approved’, as the NDIS does not have the function of approving or endorsing particular goods or services.
- Advertising suggesting NDIS funds will cover “all inclusive” holidays, when general costs associated with holidays would not be covered by NDIS funding.
- Meal delivery services suggesting the cost of meals is covered by the NDIS, when the NDIS does not cover food expenses.
- Advertising that provides instructions on how to use NDIS funding codes to cover costs of recreational services that are not covered by the NDIS – for example, going to the movies or a theme park.
- Advertising that suggests a business is affiliated or endorsed by the NDIS, by using NDIS in its business name or in the description of its services, for example ‘NDIS therapies’.
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