Misleading Conduct Examples: Deceptive Conduct Scenarios to Avoid

Most small businesses don’t set out to mislead anyone. In fact, the risk usually comes from the opposite place - you’re trying to market confidently, move quickly, and win customers in a competitive market.

But under Australian law, “misleading or deceptive conduct” can catch businesses out even when there was no intention to mislead. A single Instagram ad, product description, sales script, quote email or website pricing statement can create legal risk if it leaves customers with the wrong impression.

This guide gives you practical examples of misleading conduct and explains the common “grey areas” Australian businesses run into. We’ll also cover what you can do to reduce the risk (without killing your marketing).

What Counts As Misleading Or Deceptive Conduct In Australia?

In Australia, misleading or deceptive conduct is most commonly dealt with under the Australian Consumer Law (ACL). In plain English, it’s about whether your business’ conduct (what you say, show, imply or fail to correct) is likely to mislead or deceive customers.

It doesn’t have to be deliberate. It also doesn’t have to be a direct lie. It can be:

• Something you say (e.g. “This includes installation” when it doesn’t)
• Something you imply (e.g. showing accessories in a photo that aren’t included in the purchase)
• Something you leave out (e.g. not mentioning a key limitation until after the customer pays)
• Something someone else says for you (e.g. a reseller, influencer or staff member making claims you don’t correct)

Misleading conduct often overlaps with pricing and advertising issues. If you need a broader lens on the elements regulators and courts look at, it can help to understand the elements of misleading or deceptive conduct and what tends to trigger enforcement.

It’s also worth remembering that “conduct” is broad: it includes website copy, signage, ads, emails, product packaging, phone scripts, sales proposals, and even silence in some situations.

Misleading Conduct Examples In Advertising And Marketing Claims

Marketing is where most small businesses accidentally create risk - because marketing is often written to persuade, simplify, and highlight benefits. The problem is when a “simplified” message becomes inaccurate (or creates an incorrect overall impression).

Example 1: “Limited Time Offer” That Isn’t Really Limited

If you advertise “Today only” or “Ends midnight” but continue the promotion for weeks (or repeat it constantly), that can be misleading. Even if the price is genuinely discounted, the urgency claim may not be true.

What to do instead: If you want urgency, set a real end date (and stick to it) or phrase it honestly (e.g. “Introductory offer” with clear timeframes).

Example 2: “Best In Australia” Or “Number One” Without Evidence

Big claims like “best,” “#1,” or “highest-rated” can be risky unless you have a reasonable basis for the statement at the time you make it (and ideally, evidence you can point to). Even “Australia’s favourite” can be problematic if it implies broad market data you don’t have.

What to do instead: Use verifiable, narrower claims (e.g. “Rated 4.9/5 by 200+ customers”) and keep your evidence on file.

Example 3: Before-And-After Photos That Create The Wrong Impression

Before-and-after photos in beauty, fitness, property improvement, cleaning, and professional services can be powerful - but risky if they imply typical results when those outcomes aren’t typical.

What to do instead: Be clear about variables and context (timeframes, products used, conditions). If the result is not typical, say so clearly.

Example 4: “Free” Offers That Aren’t Actually Free

“Free trial” can become misleading if:

• the customer must pay a non-refundable setup fee
• there are hidden charges (like mandatory shipping, admin fees, or add-ons)
• it automatically converts to a paid subscription without clear upfront disclosure

What to do instead: If there are conditions, put them close to the “free” claim (not buried in fine print).

Example 5: Using Disclaimers As A “Fix” For A Big Claim

Small disclaimers don’t always “cure” a misleading headline. If the main message is likely to mislead, a disclaimer that’s hard to find or hard to understand may not protect you.

What to do instead: Make sure the overall impression is accurate. Use disclaimers to clarify, not to contradict.

Misleading And Deceptive Conduct Examples In Pricing, Quotes, And “Hidden Costs”

Pricing issues are one of the most common triggers for complaints and regulator attention. This is also where you’ll see a lot of everyday misleading and deceptive conduct examples - especially if your quotes and invoices don’t match what customers think they agreed to.

Example 6: Advertising A Price “From $X” When Most Customers Can’t Get It

“From $X” pricing can be misleading if the advertised price is not genuinely available for a reasonable proportion of customers, or if it only applies under narrow conditions you don’t disclose clearly.

What to do instead: Use “from” prices carefully and explain what affects the final cost (e.g. size, location, inclusions).

Example 7: Not Disclosing Mandatory Fees Until Checkout

If you promote a product or service at a certain price but only reveal compulsory fees (e.g. “admin fee,” “booking fee,” “processing fee”) at the end of checkout, customers can argue they were misled.

What to do instead: Where possible, include unavoidable fees in the upfront price customers see, or disclose them early and prominently.

Example 8: “GST Included” Or “Ex GST” Confusion

If you sell to consumers, pricing generally needs to be presented in a way that is clear and not misleading (and the ACL has specific rules about how component pricing must be displayed). “$1,000 + GST” can be common in business-to-business contexts, but it may create issues if your audience is mainly everyday consumers or if your marketing implies the total price is $1,000.

What to do instead: Be consistent across your website, quotes, and invoices. If you quote ex GST, make it obvious and repeat it where it matters (like at the point of payment). GST and tax treatment can also be business-specific, so if you’re unsure how you should present GST or pricing components, it’s worth checking with your accountant (Sprintlaw can help with the legal side, but we don’t provide tax advice).

Example 9: A Quote That Leaves Out Key Assumptions

Many disputes start with a quote that seems clear to you, but not to the customer. For example:

• a builder quotes for a “bathroom renovation” but excludes waterproofing
• a marketing agency quotes for “website design” but excludes copywriting and stock images
• a service provider quotes for “monthly management” but excludes ad spend or software subscriptions

Even where you technically didn’t say something untrue, the overall impression could still be misleading if a reasonable customer would assume those items were included.

What to do instead: Use a written quote that clearly sets out inclusions, exclusions, assumptions, and variation processes. If you also use terms on your website, it can help to align them with your Business Terms so customers see consistent messaging.

Misleading Conduct Examples In Products, Services, And Performance Promises

Another major category of misleading conduct examples involves what you say about what you’re selling - its quality, features, results, or suitability.

Example 10: Claiming A Product Does Something It Can’t Do

This can be obvious (e.g. “waterproof” when it isn’t) or subtle (e.g. implying a product is “therapeutic” or “medical-grade” without a reasonable basis). It can also happen through product descriptions that exaggerate performance or omit important limitations.

What to do instead: Make sure your product claims match your evidence (testing, certifications, supplier specs). If you’re relying on supplier information, keep records.

Example 11: Misleading Statements About Warranties And Returns

Customers often ask about warranty periods, refunds, and returns. You need to be careful that your statements don’t undercut consumer guarantees or misrepresent what customers are entitled to.

A common issue is implying a customer has “no right to a refund” in situations where the ACL may require a remedy.

What to do instead: Ensure your customer-facing policies are consistent with the ACL. If you publish refund/returns wording, it should fit with your overall consumer law approach - and you may also want a tailored Warranties Against Defects Policy if you provide express warranties.

Example 12: “Certification” Or “Accreditation” Claims That Aren’t True

It’s risky to suggest you’re licensed, registered, accredited, “certified,” or “approved” when you’re not - or when the accreditation is different from what customers would reasonably think. Even using logos (industry badges, association marks) can be misleading if you don’t hold that membership or approval.

What to do instead: Only use credentials you hold, and describe them accurately (including what they mean).

Example 13: Testimonials That Don’t Reflect The Real Customer Experience

Testimonials can be misleading if they are fake, edited in a way that changes meaning, or presented as typical outcomes when they are exceptional outcomes.

What to do instead: Keep records of testimonials, get permission to use them, and avoid presenting outlier results as “what customers can expect” unless that is true.

Misleading Conduct Examples In Sales Practices, Contracts, And Customer Communication

Misleading conduct isn’t limited to your marketing team. It can happen in day-to-day conversations and documents - especially if you have staff handling sales, onboarding, or customer service.

Example 14: Sales Scripts That Overpromise

If your staff say things like:

• “This will definitely solve the problem”
• “You’ll be up and running in 24 hours”
• “We guarantee you’ll get approved”

…those statements can create legal risk if they aren’t true, or if they depend on factors outside your control.

What to do instead: Train staff to use careful wording (“usually,” “typically,” “subject to,” “based on…”) and to be upfront about dependencies.

Example 15: “Subject To” Fine Print That Customers Don’t See

If you rely on a key condition (for example, “subject to availability” or “subject to assessment”), but the customer only sees it after they’ve committed, you can still be exposed if the earlier messaging created a strong overall impression.

What to do instead: Put key limitations where the customer will actually see them - in the offer, quote, landing page, or checkout screen.

Example 16: Contract Terms That Conflict With Your Sales Pitch

A classic mismatch: the salesperson says “cancel any time,” but the contract has a 30-day notice requirement and an early termination fee.

Even if your contract is written clearly, you may still face disputes and reputational damage if the customer reasonably relied on what was said to them.

What to do instead: Make sure your customer-facing contract and sales messaging line up. Many businesses use a tailored Customer Contract (or service agreement / terms) so the legal terms reflect the commercial offer you actually make.

Example 17: Failing To Correct A Known Misunderstanding

Sometimes misleading conduct is about what you don’t say. If a customer clearly believes something that isn’t true (and you know it), staying silent can create risk - particularly where that misunderstanding influences their decision to purchase.

What to do instead: If you notice a customer misunderstanding, correct it in writing before they sign or pay.

How Can Your Business Avoid Misleading Conduct? Practical Steps That Actually Work

Avoiding misleading conduct is not about making your marketing bland. It’s about building habits and systems so your messaging stays accurate as your business grows.

1. Pressure-Test Your Claims Before You Publish Them

Ask: “If a customer relied on this statement, would it be accurate in the real world?”

• Do you have evidence for performance claims?
• Are the inclusions/exclusions clear?
• Would a “reasonable customer” interpret this differently to how you intended?

2. Keep Pricing Clear And Consistent Across Channels

Ensure your website pricing, ads, proposals, invoices and customer service scripts are aligned. Conflicts between channels are a common cause of complaints.

If you run promotions, have a quick process for checking:

• the start and end date
• eligibility criteria
• stock limits (if relevant)
• any mandatory fees or exclusions

3. Put The “Important Stuff” Up Front (Not In The Fine Print)

As a general rule, if a condition would affect whether a customer buys, it should be communicated early and clearly.

This is especially important for:

• auto-renewing subscriptions
• cooling-off rules (or no cooling-off)
• cancellation fees
• delivery timeframes and delays
• what’s included vs optional add-ons

4. Use Written Terms That Match Your Actual Offer

Many misleading conduct disputes aren’t really about “bad behaviour” - they’re about expectations.

Having clear written terms helps set those expectations properly, including:

• scope of work and deliverables
• timeframes and dependencies
• fees, payment terms and variations
• termination and refund processes

If you sell online or collect enquiries via your website, it’s also important to have a Privacy Policy that accurately explains how you handle customer personal information (especially if you do email marketing, retargeting, or use third-party platforms).

5. Train Your Team (And Your Contractors) On What They Can And Can’t Say

Your business can be responsible for what staff say in sales calls, DMs, and in-store conversations. Even contractors and affiliates can create risk if they act on your behalf.

It helps to:

• create approved claim language for common questions
• avoid guarantees unless they’re genuinely guaranteed
• have escalation processes for complex customer questions
• keep written records (quotes, confirmations, change requests)

6. Fix Mistakes Quickly (And In Writing)

If you spot an incorrect claim on your website, an outdated price list, or a staff member overpromising in writing - fix it quickly and notify affected customers where needed.

Quick corrections can reduce legal exposure and often prevent complaints escalating.

Key Takeaways

• Misleading conduct examples aren’t limited to obvious lies - they often come from overpromising, unclear pricing, or leaving out key limitations.
• Misleading and deceptive conduct can happen through advertising, quotes, product descriptions, sales calls, contracts, and even silence when you should correct a misunderstanding.
• Pricing is a high-risk area: “from” pricing, hidden fees, unclear GST statements, and vague quote assumptions commonly trigger disputes.
• Disclaimers don’t always fix a misleading headline - the overall impression matters, and important conditions should be clearly communicated upfront.
• Strong customer-facing documents (like Business Terms and a Customer Contract) help align customer expectations with what you actually provide.
• Systems and training matter: claim-checking, consistent pricing, clear written communication, and staff training reduce your risk as you scale.

If you’d like a consultation on reducing the risk of misleading and deceptive conduct in your advertising, pricing, and customer contracts, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.