Recently, the National Disability Insurance Scheme (NDIS) has put out a notice to inform participants and their families of signs of misleading or false advertisements of NDIS services. At Inclusion Tree, we are all too aware that the NDIS is a lifeline for hundreds of thousands of Australians living with disabilities. It provides essential funding for supports and services that improve the quality of life for participants and gives them greater freedom to live equal lives. However, as the scheme continues to grow, so does the risk of unethical businesses that aim to exploit participants and their families through false and misleading advertising.
Recently, the Australian Competition and Consumer Commission (ACCC) has acted against companies falsely claiming their products are “NDIS approved” or “NDIS funded.” These deceptive marketing tactics not only mislead vulnerable consumers but can also lead to participants unknowingly spending their funding on ineligible supports.
In this story, we will look at two examples of companies that have had action taken against them and what they did to catch the eye of authorities. These practices harm participants directly, and we’ll share some handy advice to help you avoid them and protect yourself. We will also look at how the NDIS Code of Conduct helps ensure ethical practices and where you can report misleading claims if you see them in the wild.
Two companies that the ACCC has issued infringement notices to are Bedshed & Thermomix, both of which were found to advertise their products as “NDIS approved” falsely.
In the case of Bedshed, they were penalised $39,600 for claims they made about their products. If you haven’t heard of Bedshed, they are a national bedding retailer that sells mattresses, furniture and accessories. The ACCC found that they were marketing some of their items as “NDIS approved” and “NDIS permitted”. The ACCC found that these claims were deceptive because the NDIS does not “approve” any specific product. Funding decisions are made individually, based on a participant’s plan, rather than from pre-approved lists. They found that these claims misled vulnerable consumers and were a serious breach of Australian Consumer Law (ACL).
ACCC Chair Gina Cass-Gottlieb warned:
“Targeting consumers experiencing vulnerability or disadvantage with misleading advertising is particularly concerning… These infringement notices should serve as a warning to all businesses.”
For Thermomix, a white goods seller received a penalty of $79,200 for similar claims they made for their cooking appliances and vacuum cleaners, claiming these products were “NDIS Approved”, “NDIS-registered products” and had “NDIS assistive technology”. The ACCC reiterated that no product is automatically NDIS-funded, and such claims exploit participants who rely on accurate information to make informed choices.
Links to both the media releases from the ACCC:
No one likes to be taken advantage of, and this hits harder for those in a vulnerable position. Misleading claims can have dire consequences, resulting in real-world harm for those on the NDIS. These false claims can lead to wasted NDIS funds, leading participants to spend their budgets on ineligible products, leaving less funding for genuine supports.
Misleading claims are also detrimental to the NDIS sector. Unethical businesses in the space erode trust in the sector, undermining confidence in legitimate NDIS providers. This intern added stress for participants and families when looking for providers, leaving them with the lingering thought of “What if this is one of the bad providers” in the back of their mind when trying to access support.
In a worst-case scenario, Participants could face legal and financial risks. If a Participant were to unknowingly misuse their plan’s funds on a product they believed was approved by the NDIS, they could face complications with the National Disability Insurance Agency (NDIA).
The ACCC has identified several misleading practices:
Claims of “NDIS Approved” or “NDIS Funded”
The NDIS does not endorse any specific products or services.
Funding is determined on a case-by-case basis, not through blanket approvals.
Holidays & Recreational Activities Marketed as NDIS-Covered
Some businesses falsely claim that “all-inclusive holidays” or theme park tickets can be paid for with NDIS funds.
Reality: The NDIS does not fund general leisure activities unless directly tied to disability-related support.
Meal Delivery Services Claiming NDIS Coverage
While meal prep supports may be funded for those with severe disabilities, general grocery costs are not covered.
Beware of ads suggesting otherwise.
Using NDIS Logos or Branding to Suggest Endorsement
Some businesses display “We ❤ NDIS” or similar logos to imply official backing.
Unless they are registered NDIS providers, this is misleading.
Incorrect Use of NDIS Funding Codes
Providers may instruct participants on how to misuse funding codes for ineligible services (e.g., movies, gym memberships).
This is fraudulent and can lead to plan reviews or penalties.
Verify Provider Claims
Check the NDIS Provider Register (ndis.gov.au) to confirm if a business is registered.
Ask for written evidence if a provider claims their product is “NDIS approved.”
Understand Your Plan
Know what supports are reasonable and necessary under your plan.
If unsure, consult your Support Coordinator or the NDIA.
Report Suspicious Advertising
If you encounter false claims:
All NDIS providers must follow the NDIS Code of Conduct; this requires us to have honest and transparent advertising. We must also provide fair pricing to our participants; this means that, by law, we would be punished if we were to overcharge our participants. Most importantly, we are not allowed to make any false claims of NDIS endorsement or even to imply that we have any such endorsement.
What can you do if you have evidence of/or suspect a provider has breached the Code? If you feel safe in doing so, you can raise your concerns directly with the provider. However, you don’t need to do this; you are allowed to make a direct report to the NDIS Commission.
For more information on making a report, visit:
https://www.ndiscommission.gov.au/complaints/make-complaint-about-provider-or-worker
False advertising preys on vulnerable NDIS participants, risking their funding and trust in the scheme. By recognising misleading claims, verifying provider legitimacy and reporting unethical practices, you can help protect yourself and others from exploitation.
Further Resources:
Stay informed, stay safe, and ensure your NDIS funds are used ethically and effectively.
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