False or Misleading Advertising: An NDIS Provider Guide

As a NDIS provider, your commitment to supporting participants is at the heart of your work. Just as crucial is ensuring that your advertising and marketing materials accurately reflect the services you offer. As of November 2024, a significant concern for the Australian Competition and Consumer Commission (ACCC) and the NDIS Quality and Safeguards Commission has been the proliferation of false or misleading advertising that target NDIS participants. Participants often rely on provider’s statements to make decisions about how to spend their NDIS funding. When providers make false claims, participants can be induced into buying goods or services that are not claimable under their plans, potentially leading to personal debts.

Whether you are a registered or unregistered provider, you are required to comply with the NDIS Code of Conduct, which states that all providers must "act with integrity, honesty and transparency." Funding decisions within a participant’s plan are based on their individual needs and goals, not generalised offerings. As such, certain advertising claims commonly used by providers may be considered false or misleading under both the Australian Consumer Law (ACL) and the NDIS Code of Conduct.

Examples of non-compliant claims and practices include:

• Using phrases like ‘NDIS approved,’ ‘NDIS funded,’ or ‘NDIS endorsed’. The NDIS does not approve any specific goods or services.
• Suggesting NDIS funds cover "all-inclusive" holidays or recreational activities. The NDIS does not fund general holiday costs.
• Claiming meal delivery costs are covered by the NDIS. The NDIS does not cover food expenses.
• Providing instructions on how to use NDIS funding codes for non-covered services like going to the movies or a theme park.
• Implying affiliation or endorsement with the NDIS by using "NDIS" in a business name or service description (e.g., ‘NDIS therapies’).
• Engaging in sharp practices, such as high-pressure sales, offering inducements (e.g., gift cards) unrelated to a participant's plan.
• Engaging in price differentiation; such as charging NDIS participants more than other customers for the same or substantially the same goods or services without reasonable justification. 

Furthermore, the NDIS Code of Conduct explicitly prohibits providers from “falsely claiming or inferring, through the use of words or logos, that the provider is an NDIS Registered provider when they are not.” This applies equally to providers who are in the process of applying for registration. For instance, if you are currently undergoing assessment to become a registered provider, you must avoid using logos, slogans, or phrases that suggest registration status. This includes phrases such as “I/we heart NDIS” or “I/we support NDIS” alongside the tagline “Registered Provider.” Engaging in such misleading advertising not only breaches the Code of Conduct but may also raise concerns with the NDIS Commission regarding your integrity and suitability during the registration assessment process.

Recent Enforcement Actions

In addition to jeopardising your NDIS registration, breaching the Australian Consumer Law (ACL) can result in significant financial penalties of up to $50 million, three times the value of the benefit obtained, or 30% of the company’s turnover during the breach period. In May 2025, the ACCC took enforcement action against businesses making false or misleading claims about NDIS endorsement. Bedshed Franchising was fined $39,600 for allegedly advertising mattresses, furniture, and bedding accessories as “NDIS approved” and “NDIS permitted” on its website and through Google Ads. Likewise, Thermomix paid $79,200 in penalties for allegedly promoting its products online using misleading terms such as “NDIS approved,” “NDIS-registered product,” “NDIS-consumables,” “NDIS assistive technology,” and “NDIS equipment".

Key Takeaways

The message from the ACCC and the NDIS Commission is clear: your advertising must reflect the facts. Whether you are an unregistered provider, an established registered provider, or currently undergoing the registration process, it is crucial to ensure that all your advertising and marketing materials accurately reflect your current status and the true nature of your services.

• Avoid any phrases, logos, or slogans that imply NDIS approval, endorsement, or current registration if that is not genuinely the case.
• Review all marketing materials carefully to ensure they are compliant with the Australian Consumer Law and the NDIS Code of Conduct.
• Prioritise clarity, honesty, and accuracy.

This not only protects your business from significant penalties and reputation damage but, most importantly, upholds the trust and rights of NDIS participants who rely on truthful information to make informed choices.

Need Support with NDIS Compliance? At LMS TRG, we support providers through every step of the registration journey; from avoiding common pitfalls that could jeopardise your application, to preparing tailored documentation, training your team, and getting audit-ready. If you're feeling unsure about what to expect or what’s required, you’re not alone and we’re here to help.

Want to feel more confident heading into your next audit? Get in touch for a free, no obligation consultation call about how we can support you.