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The ACCC (Australian Competition and Consumer Commission) has recently highlighted a few key things to avoid as a business owner in 2025. These mostly revolve around the obligations that you owe your consumers and ensuring that your online presence remains both accurate and trustworthy.
In this article, we’ll highlight three important obligations your small business owes to your consumers. We’ll also discuss what you are owed as a small business when interacting with other businesses. For more detailed guidance on setting up your business structure, check out our article on Operating as a Sole Trader.
1. Your Obligations When You Advertise Online
Everyone wants their business to look as good as possible online. However, all the information you publish must be accurate and truthful – the law does not tolerate any attempts at false or misleading advertising. The ACCC advises that small business owners familiarise themselves with the legal landscape surrounding advertising to ensure their marketing practices comply with current standards. For further insight on how to draft clear and legally compliant terms and conditions for your website, check out our Website Terms and Conditions guide.
What Counts As False Or Misleading Advertising?
False or misleading advertising is characterised by statements that aren’t true or by presenting information that creates a false impression. You should always be conscious of the overall impression your advertising conveys.
Some examples of potentially misleading advertising practices include:
- Comparing your product to another. When you compare your product to a competitor’s in an online advert, you must ensure that any claims regarding price, quality, range, or volume are truthful and verifiable. Falsely claiming superiority can amount to misleading advertising.
- Advertising an unavailable discount or sale. It is common to promote a sale when one is available. However, if the sale is disingenuous or extremely limited – sometimes referred to as ‘bait advertising’ – this tactic is not permitted as it misleads the customer.
So What Makes It Illegal?
Australian Consumer Law governs the advertising practices of businesses, whether online or offline. Specifically, sections 18 and 29 of the Competition and Consumer Act 2010 prohibit false and misleading advertising. The penalties for contravening these provisions have been updated for 2025. For individuals, fines can reach up to $500,000, while corporations face penalties determined by whichever is greater of:
- $10,000,000,
- three times the value of the benefits received from the advertising, or
- 10% of your annual turnover for the following year.
2. Your Obligations Regarding Online Reviews Of Your Business
Online reviews play a critical role in influencing consumer decisions. As a business with an online presence, you must ensure that reviews are genuine and that your platform is not used to mislead potential customers. Fake or manipulated reviews can breach Australian Consumer Law and damage your reputation. For more guidance on managing your digital reputation, have a look at our Dealing with Negative Online Reviews article.
A review is not considered genuine if it is written by someone affiliated with your business, by a competitor, or by a paid reviewer falsely claiming to have used your product or service.
But I Have Seen Businesses Offer Free Food For Reviews Before?
Offering incentives for reviews is legal provided that the incentive is available to anyone who submits a review – be it positive or negative. It’s vital to clearly communicate that the reward does not depend on the content of the review.
What About Editing Online Reviews?
While it is acceptable to edit or remove reviews that are fake, false, or misleading, you must adhere to the specific policies of the platform hosting those reviews. Ensure any changes comply with the platform’s guidelines to avoid further complications.
If a customer’s negative review stems from a misunderstanding, it may be more effective to reach out and resolve the issue rather than unilaterally editing or deleting their review.
What Are The Consequences?
If your online reviews lead to false or misleading representations, your business may be deemed to be engaging in misleading and deceptive conduct under section 18 of Australian Consumer Law. The penalties in such cases mirror those for false advertising, making it essential to ensure that all published reviews reflect genuine customer experiences.
3. Do I Have Any Obligations After The Customer Clicks Away?
Your obligations extend beyond the initial sale or service. You must guarantee that your product or service performs as described. This guarantee applies to any goods sold-whether for personal or household use-or any items valued under $100,000. These guarantees exist automatically, independent of any additional warranties you might offer. For more details on meeting your consumer guarantees, see our guide on How Can Your Business Comply with Consumer Guarantees.
So What Must I Guarantee Exactly?
Depending on whether you are offering a product or a service, different guarantees apply:
You must guarantee your product:
- Acceptable Quality: The product should match its description, be fit for its intended purpose, be free from defects, and not include any hidden costs.
- Appearance: It should meet reasonable expectations regarding its look and presentation.
- Functionality: It must work or perform as one would normally expect.
You must guarantee your service:
- It is provided with the requisite care, skill, and technical knowledge.
- All reasonable steps are taken to prevent any damage or loss.
- The service delivers the promised result.
- The service is provided within the promised timeframe or, if no date was set, within a reasonable time.
What Happens If My Product Or Service Does Not Live Up To Its Guarantee?
If your product fails to meet its guarantee, your customer is entitled to a remedy, which may include:
- A refund,
- A replacement, or
- A repair of the product.
If a service does not meet its guarantee, your customer has the right to:
- Cancel the service, or
- Claim compensation for any losses or damages incurred.
The obligation to guarantee your products and the corresponding rights of your customers are set out in Part 3-2 – Division 1 of the Competition and Consumer Act 2010. These provisions remain a cornerstone of consumer protection in 2025.
As A Small Business, Am I A Consumer?
Absolutely! As a business that also engages with other businesses, you are considered a consumer under Australian Consumer Law. This entitles you to the same protections as individual consumers. For example, if you operate as a sole trader – as detailed in our Operating as a Sole Trader article – your rights are upheld in your transactions.
The ACCC advises small businesses to take precautions when dealing with other businesses. Always perform thorough checks, request evidence for any claims, ensure you have robust contracts in place (see our guide on Setting Out Good Business Terms & Conditions), and protect your interests throughout every transaction.
Additional Tips for Staying Compliant in 2025
As we navigate through 2025, it’s essential for your small business to stay updated with the latest regulatory changes and industry best practices. The ACCC has refined its guidelines on digital advertising and consumer guarantees to reflect new market trends. Regularly review your advertising policies, update your online terms and conditions, and consult with legal experts – such as our team here at Sprintlaw – to ensure you remain fully compliant. For further insights on maintaining robust compliance, read our article on Legal Advice for My Startup and explore our comprehensive business set up guides here.
Still Unsure?
Understanding your rights and obligations as both a provider and a consumer is crucial for the success of your business. Ensuring that your advertising, reviews, and guarantees comply with Australian Consumer Law not only protects your customers but also safeguards your business. If you have any questions or need assistance with your business legalities, get in touch with us at team@sprintlaw.com.au or call 1800 730 617 for a free, no-obligation chat.
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