The Persistent Challenge of Misleading Online Advertising in Australia
In the digital age, consumers are bombarded with advertisements that often stretch the truth or outright deceive. A recent inquiry highlights this issue, with one individual noting, "Ads I see online unashamedly lie." This raises a critical question: doesn't Australian consumer law require advertisers not to mislead us?
Australian Consumer Law and Its Application Online
According to policy expert Kat George, advertising shown in Australia cannot be false or misleading. The Australian Consumer Law applies unequivocally to all businesses offering goods and services in the country, regardless of their location. This includes online advertising on social media platforms and other digital spaces.
Claims made in advertising must be "true, accurate and based on reasonable grounds," and businesses must be able to substantiate their assertions. For instance, ads promoting products like a "new cooling device" that promises unrealistic energy savings and performance are often baseless, as noted by a mechanical engineer who described such claims as "absolute garbage."
The Greenwashing Phenomenon and Regulatory Response
Many deceptive ads fall under the category of "greenwashing," where businesses exaggerate environmental benefits. In late 2022, the Australian Competition and Consumer Commission (ACCC) conducted an internet sweep, finding that about 57% of 247 businesses reviewed made concerning claims online. These included vague environmental assertions without sufficient evidence.
As a result, the ACCC has prioritised greenwashing in its enforcement efforts. In 2025, this led to high-profile court cases against companies like Australian Gas Networks and Banana Boat over alleged misleading claims. The regulator has also established a taskforce to enhance expertise and engage with businesses to prevent such practices.
The Sisyphean Task of Policing the Internet
Despite these efforts, the internet's vast and regenerative nature poses significant challenges. As soon as one misleading ad is removed, others quickly emerge. This is compounded by the prevalence of online retail scams and the rise of generative AI, creating a complex landscape for consumers and regulators alike.
Kat George emphasises that while the ACCC is taking action, it remains a daunting task. Consumers are advised to trust their expertise and report suspicious ads to the ACCC Infocentre at 1300 302 502. Providing details such as the ad content, business name, and location can help the regulator identify patterns and investigate systemic issues.
Consumer Empowerment and Reporting Mechanisms
It is not the consumer's responsibility to report every false ad, but doing so for priority areas like greenwashing can make a difference. The ACCC uses data from reports to inform compliance activities, industry engagement, and research. While individual reports may not trigger immediate action, collective data can reveal trends and lead to broader investigations.
In summary, Australian consumer law does protect against misleading online advertising, but enforcement is an ongoing struggle. Consumers must remain vigilant, and regulators continue to adapt to the evolving digital environment.
