Online Ads Raise Concerns Over Misleading Content Under Australian Consumer Law

In the era of digital advertising, many consumers are questioning whether online ads are held to the same legal standards as traditional marketing. This concern was recently highlighted by a Tasmanian engineer who expressed frustration over seemingly false claims in online advertisements, particularly those promoting energy-efficient cooling devices.

Australian Consumer Law does indeed apply to all online advertising, regardless of where the business is based or which platform hosts the content. The law explicitly requires that all marketing claims must be “true, accurate and based on reasonable grounds,” with businesses bearing the responsibility to substantiate their statements.

The cooling device advertisements described by the concerned engineer—promising to “cool any room in 10 minutes while using 96% less energy than traditional air conditioning systems”—appear to fall into the category of “greenwashing.” This increasingly common practice involves businesses making products or services appear more environmentally friendly than they actually are.

The Australian Competition and Consumer Commission (ACCC) has recognized the prevalence of this issue. In late 2022, the regulatory body conducted an internet sweep of environmental claims, finding that approximately 57% of the 247 businesses reviewed were making potentially misleading statements online. Common violations included vague environmental claims and insufficient evidence to support advertised benefits.

In response to these findings, the ACCC has prioritized combating greenwashing through enforcement, compliance monitoring, and educational initiatives. The commission’s efforts have already resulted in significant legal actions against prominent companies. In 2025, the ACCC took Australian Gas Networks to court over alleged misleading claims in a renewable gas campaign and pursued legal action against sunscreen manufacturers Banana Boat and Hawaiian Tropic for supposedly deceptive “reef friendly” marketing.

The regulator has also established a specialized internal taskforce to develop expertise in identifying false environmental claims and has increased direct engagement with businesses to provide guidance on compliant advertising practices.

Despite these efforts, policing the vast digital advertising landscape remains challenging. The internet’s scale and regenerative nature mean that for every misleading advertisement that gets removed, many more appear. The proliferation of online retail scams and the increasing use of generative AI technology further complicate regulatory oversight.

For consumers encountering potentially misleading advertisements, the ACCC encourages reporting suspicious claims directly through their Infocentre at 1300 302 502. While individual reports may not trigger immediate investigation, the ACCC uses aggregated consumer complaints to identify patterns and systemic issues within the marketplace.

When filing a report, consumers should provide specific details about the advertisement in question, including the business name and where the ad was observed. This information helps the ACCC target their compliance activities, industry engagement, and research more effectively.

The situation highlights a growing tension between rapid digital innovation and consumer protection frameworks. While Australian Consumer Law theoretically provides the same protections across all advertising channels, the practical enforcement of these standards in the digital realm presents significant challenges for regulators working with finite resources in an increasingly complex marketplace.

For consumers, the best approach remains a combination of skepticism toward extraordinary claims, reliance on personal expertise or research, and willingness to report suspected violations to help regulators identify problematic trends in online advertising.