The digital landscape presents a formidable challenge for consumer protection, with misleading advertisements proliferating at an alarming rate. As soon as one deceptive ad is removed, countless others emerge, creating a relentless cycle that tests the limits of regulatory frameworks.
The Legal Framework and Its Application
Contrary to common perception, the Australian Consumer Law unequivocally applies to online advertising, including content on social media platforms and video-sharing sites like YouTube. This legislation mandates that all businesses operating in Australia, regardless of their physical location, must ensure their marketing claims are truthful, accurate, and substantiated by reasonable evidence.
Kat George, a policy expert, emphasises that there is no exemption for digital spaces. "The law covers goods and services sold in Australia, and this extends without ambiguity to online promotions," she states. This means that advertisements making grandiose promises, such as cooling devices that claim to reduce energy use by 96% without installation, are legally required to back up such assertions.
The Pervasive Issue of Greenwashing
A significant subset of misleading online advertising involves greenwashing, where companies exaggerate the environmental benefits of their products. In late 2022, the Australian Competition and Consumer Commission (ACCC) conducted an extensive review, uncovering that approximately 57% of 247 businesses examined were making concerning environmental claims online.
These businesses often employed vague terminology or failed to provide adequate evidence to support their statements. As a result, the ACCC has prioritised greenwashing in its enforcement and educational initiatives. In 2025, this focus led to high-profile legal actions against companies like Australian Gas Networks and Banana Boat, highlighting the regulator's commitment to addressing these deceptive practices.
Regulatory Challenges and Consumer Action
Despite these efforts, policing the internet remains a daunting task. The vast and regenerative nature of the web means that for every misleading ad removed, many more appear. This is compounded by the rise of online retail scams and the misuse of generative AI, which further complicate the regulatory landscape.
Consumers, such as Robert from Tasmania, who encounter blatantly false ads, are encouraged to report them to the ACCC. While it is not an individual's responsibility to monitor all advertising, reporting specific instances, especially those involving greenwashing, can aid regulators in identifying patterns and systemic issues.
The ACCC actively uses data from consumer reports to inform its compliance activities and industry engagements. By calling the ACCC Infocentre at 1300 302 502 and providing details about the advertisement, businesses involved, and where it was seen, consumers contribute to a broader effort to uphold advertising standards.
Navigating the Digital Marketplace
For individuals, discerning truth from falsehood in online ads requires vigilance. Trusting one's expertise and intuition is crucial, as is staying informed about consumer rights. The ACCC offers guidance to help businesses avoid greenwashing and other misleading practices, but the onus also lies on consumers to remain critical of the claims they encounter.
In summary, while Australian consumer law provides a robust framework for combating misleading online advertising, the sheer scale and adaptability of the internet make enforcement an ongoing struggle. Through combined efforts from regulators, businesses, and informed consumers, progress can be made in fostering a more transparent digital marketplace.
