What Are My Consumer Disclosure Obligations (Fair Trading Act NSW)?

If you sell goods or services to customers in New South Wales, you have legal obligations to be upfront, accurate and transparent about what you’re offering and how much it costs. These “consumer disclosure” rules exist so customers can make informed choices - and so your business competes fairly.

In NSW, your disclosure duties are primarily driven by the Australian Consumer Law (ACL), which is enforced locally by NSW Fair Trading through the Fair Trading Act 1987 (NSW). In practice, that means you need to avoid misleading statements, display clear and truthful prices, disclose key terms and fees, honour consumer guarantees and provide information customers are legally entitled to see.

In this guide, we’ll break down what you must disclose (and what to avoid), how the NSW Fair Trading Act interacts with the ACL, and practical steps to keep your business compliant - whether you operate online, in-store or both.

How Does The Fair Trading Act NSW Interact With The ACL?

The Australian Consumer Law (in Schedule 2 of the Competition and Consumer Act 2010) sets the national rules for consumer protection. It applies to all Australian businesses. The Fair Trading Act 1987 (NSW) doesn’t replace the ACL - it works alongside it, giving NSW Fair Trading powers to investigate, issue penalties and take action when businesses breach the ACL in NSW.

So, when we talk about your disclosure obligations in NSW, we’re mainly talking about the ACL rules on truth in advertising, fair pricing and consumer guarantees, enforced by NSW Fair Trading. If you trade interstate or online, the same core obligations still apply Australia‑wide.

Some industries in NSW also have extra disclosure rules (for example, building, motor dealers and real estate). If you’re in a regulated sector, you’ll need to meet those specific disclosure duties as well as the ACL baseline (more on this below).

Key Consumer Disclosure Obligations For NSW Businesses

Here are the main disclosure areas to focus on. Think of this as your “be clear, be accurate, be upfront” checklist.

1) Prices And Surcharges

• Total price must be clear: If you display a price, it should be the total price payable (including compulsory fees, taxes and charges) so a customer isn’t surprised at checkout.
• Surcharges must be disclosed: If you charge a card surcharge or other fee, disclose it prominently and accurately before purchase.
• Strike-throughs and discounts: If you promote a “was/now” price or “X% off”, you must be able to substantiate the previous price and ensure the comparison is genuine.

It’s good practice to standardise how prices are presented across your website, point-of-sale and advertising. Clear pricing builds trust - and helps you steer clear of issues under advertised price laws.

2) Product Or Service Characteristics

• Don’t mislead by what you say or show: Product descriptions, photos, comparisons, testimonials and “limited time” claims must be accurate. Omitting important information can also be misleading.
• Avoid exaggeration: Superlatives like “best”, “fastest” or “guaranteed results” can be risky if you can’t back them up with objective support.
• Comparative advertising: If you compare competitors or make performance claims, keep records to support what you say.

The ACL’s cornerstone rule is the prohibition on misleading or deceptive conduct (section 18). Closely related are the “false or misleading representations” rules (section 29), which catch specific claims about price, quality, testimonials and benefits, among others. If you’re making concrete claims, make sure you could justify them if asked. You can read more about section 29 representations here.

3) Consumer Guarantees, Warranties And Refund Rights

• Consumer guarantees apply automatically: Goods must be of acceptable quality, fit for purpose and match descriptions; services must be provided with due care and skill and within a reasonable time.
• Refund and repair disclosure: You must not state “no refunds” - that’s misleading because consumer guarantees still apply. You can set a fair policy for change-of-mind returns, but you can’t limit statutory rights.
• Warranties Against Defects (manufacturer/retailer promises): If you provide a written warranty, it must include prescribed wording, what’s covered and how to claim. A compliant Warranties Against Defects policy helps you meet these requirements.

Be transparent about how customers can access their rights. Clear signage or website copy explaining consumer guarantees (and how to make a claim) can prevent disputes and meet your disclosure obligations.

4) Fees, Deposits, Cancellations And Late Charges

• Upfront disclosure: If you charge booking fees, non‑refundable deposits, cancellation or late fees, these must be clearly disclosed before the customer commits.
• Fairness matters: Terms cannot be unfair or penal in effect, especially for standard form contracts with consumers. Transparency helps, but the term also needs to be reasonable.
• Be specific: Spell out when the fee applies, how much it is, and any deadlines or conditions to avoid it.

Clear terms around deposits and cancellations reduce friction and help you avoid disputes about what was agreed. If you’re not sure what’s reasonable, it’s worth getting targeted advice on things like non‑refundable deposits and cancellation fees.

5) Direct Debit, Subscriptions And Auto-Renewals

• Tell customers what they’re authorising: For recurring billing, disclose the amount, frequency, how to stop or pause payments, and notice periods for price increases or changes.
• Easy exit: Make cancellation straightforward and clearly explained. Hidden hoops or obscure processes raise risk.
• Keep records: Maintain proof of consent and provide copies of direct debit terms when requested.

Transparent subscription terms are essential. If you use recurring billing, ensure your processes align with direct debit laws and ACL transparency obligations.

6) Receipts, Invoices And Proof Of Purchase

• Provide itemised receipts: For purchases over the threshold (or if asked), give a receipt that shows what was bought, the price, date and seller details. This helps customers exercise their rights.
• Digital or paper both fine: Ensure your system can quickly resend copies when customers ask.

Good recordkeeping isn’t just a compliance task - it also reduces churn and support time by making returns and fixes smoother.

7) Online Disclosures: Website Terms, Privacy And Checkout

• Key terms where customers can see them: Publish clear, accessible Website Terms and Conditions that set out how your site works, how orders are formed and any usage rules.
• Privacy transparency: If you collect personal information (e.g. email, phone, delivery address, analytics), you’ll need a clear, accurate Privacy Policy explaining what you collect and why.
• Checkout clarity: Total price, shipping, recurring billing, delivery timeframes, returns and warranty information should be obvious before a customer pays.

Online stores are held to the same standards as bricks‑and‑mortar, but you’ll rely more on written disclosures. Make sure your UX supports legal clarity - if a term is important, don’t bury it.

What Counts As “Misleading” When You Disclose Information?

Misleading or deceptive conduct isn’t limited to outright lies. It can include:

• Leaving out material facts (e.g. “unlimited” plans with a hidden cap)
• Using fine print to contradict a bold headline claim
• Ambiguous language that could reasonably give the wrong impression
• Old or auto‑filled reviews that don’t reflect your current offer

The test is how a reasonable consumer would understand your statements in context. If there’s a real risk they could be misled, fix the wording, add context, or remove the claim. When in doubt, a quick review by a consumer lawyer can help you calibrate the risk before you publish.

Do Certain NSW Industries Have Extra Disclosure Rules?

Yes. While the ACL sets the baseline, many NSW industries have additional, specific disclosure duties under separate laws or codes. Common examples include:

• Building and trades: Detailed contract disclosure requirements (scope, pricing method, statutory warranties).
• Real estate and agency: Prescribed forms and statements for sales, leasing and commissions.
• Motor dealers and repairs: Pre‑contract disclosure about vehicle history, statutory warranties and fee structures.
• Health and wellness: Upfront disclosure about results, qualifications, risks and cancellation terms.

If you’re in a regulated sector, check your specific legislation and any mandatory forms or scripts. You’ll still need to comply with the ACL (and Fair Trading can enforce it), but you may also need to meet extra NSW‑specific disclosures before you can take a booking, contract or payment.

Practical Steps To Stay Compliant (And Build Customer Trust)

Here’s a practical framework you can apply to your website, ads, in‑store materials and scripts.

Step 1: Map The Customer Journey

List each touchpoint where a customer sees key information: ads, product pages, checkout, order confirmations, invoices and post‑purchase emails.

At each point, ask: Is the essential information here? Is it easy to find and written in plain English? Would a reasonable customer understand it without having to ask?

Step 2: Standardise Your Core Disclosures

• Pricing: Show total price, disclose surcharges, and keep discount claims honest.
• Offer details: Describe what’s included/excluded, limitations, timeframes and any conditions that really matter.
• Fees: Spell out deposits, cancellation fees, late fees and how to avoid them.
• Refunds and guarantees: Explain consumer guarantees and your process for returns, repairs or replacements.

Create a plain‑English “core disclosures” sheet for your team so everyone’s saying the same thing, every time.

Step 3: Put It In Writing - Clearly

Back up your verbal or headline claims with written detail that’s accessible before purchase. For online sellers, this means well‑structured policies and short explanations right where decisions are made (product pages and checkout), not just in a long policy page.

For complex offerings, a well‑drafted customer contract or online Terms and Conditions will help you present key information consistently.

Step 4: Keep Evidence

Save screenshots of campaigns, keep records of comparative tests, and document how prices or “was/now” claims were set. If NSW Fair Trading or a customer queries a claim, you’ll be ready.

Step 5: Train Your Team

Most problems arise on the front line. Give staff short scripts for common questions (refunds, cancellations, inclusions, delivery timeframes) and empower them to be transparent. Consistent messages reduce complaints and compliance risk.

Step 6: Review High-Risk Areas Regularly

• Sales and promotional calendars: Pre‑check headline offers and footnotes for clarity.
• Subscription and direct debit terms: Make sure customers see and accept billing frequency, increases and cancellation steps in advance - particularly for trials auto‑converting to paid.
• Warranty and returns pages: Confirm they align with the ACL and avoid “no refunds” wording. A compliant warranty statement can be linked from your order confirmation and packaging.

What Legal Documents Help You Meet Disclosure Obligations?

Having well‑drafted, plain‑English documents doesn’t just protect you - it also makes disclosure easy and consistent. Depending on your business model, consider:

• Customer Terms and Conditions: Sets out what you sell, how orders work, pricing, delivery, cancellations, refunds and liability. For online stores, your website’s Terms and Conditions do this job.
• Privacy Policy: Explains what personal information you collect, why, how you store it and customer rights - crucial if you collect emails, addresses or analytics data. A clear Privacy Policy supports both privacy compliance and your consumer transparency.
• Warranties Against Defects Statement: If you offer a written warranty, include the required wording and claim process via a compliant policy.
• Refunds and Returns Policy: Communicates how customers can exercise their rights and your change‑of‑mind rules (without limiting the ACL’s consumer guarantees).
• Direct Debit/Subscription Terms: Sets out recurring charges, frequency, cancellation and notice periods in one place.
• Sales Scripts and Store Signage: Short, consistent messaging that front‑line staff can rely on for key disclosures.

If you’re unsure which documents fit your model, a short scoping call with a consumer law specialist can help prioritise what you need now versus what can wait.

Common Pitfalls To Avoid

• “No refunds” signage: This is misleading because consumer guarantees still apply.
• Headline claims contradicted by fine print: If the fine print changes the overall impression, you may still be misleading customers.
• Hidden fees: Card surcharges, cleaning fees or cancellation charges disclosed too late (or not at all) are a compliance risk.
• Vague “lifetime” or “unlimited” claims: Unless truly unlimited, define the limits plainly.
• Copy‑pasted policies: Borrowed terms often don’t match your operations, creating both legal and customer experience issues.

Key Takeaways

• In NSW, your consumer disclosure obligations flow from the ACL, enforced locally by NSW Fair Trading via the Fair Trading Act.
• Be upfront, accurate and complete about price, inclusions, fees, refunds and key limitations - ambiguity and omissions can be misleading.
• Make sure your claims stack up under the ACL’s misleading conduct rules (sections 18 and 29) and keep evidence to substantiate promotions.
• Online sellers should present clear Terms and Conditions, a compliant Privacy Policy and transparent checkout disclosures.
• Some NSW industries carry extra disclosure duties on top of the ACL - check your sector’s specific requirements.
• Codify your disclosures through plain‑English documents and team training so information is delivered consistently every time.

If you’d like tailored advice or help putting compliant customer terms, refund/warranty wording or online policies in place for your NSW business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.