Ace Breaking News – The ACCC has instituted proceedings in the Federal Court against registered NDIS provider Ausnew Home Care Service Pty Ltd, for alleged false or misleading representations relating to the sale of aged care and disability products.
The ACCC alleges that Ausnew made false or misleading representations to consumers relating to the usual price of products, the time limited nature of sales, and the savings consumers could achieve when purchasing products during one of Ausnew’s frequent sales.
Ausnew also allegedly made false or misleading statements that certain products were ‘NDIS approved’, and about consumers’ guarantee rights under the Australian Consumer Law.
“We have taken this legal action against NDIS provider Ausnew because we were concerned it was making misleading claims to consumers, many of whom were elderly or with a disability requiring support,” ACCC Commissioner Liza Carver said.
“This action has resulted from our program of investigations into multiple NDIS providers for potential breaches of the Australia Consumer Law.”
Alleged misrepresentations regarding sales and savings
The ACCC alleges that between 1 November 2022 and 25 December 2023, Ausnew displayed a former ‘strikethrough’ price and lower ‘sale’ price next to products during frequent sales advertised on its website and in Google Shopping ads, together with ‘last chance’ sales banners and countdown clocks on its website.
The ACCC alleges this represented to consumers that goods were usually offered for sale at the ‘strikethrough’ price, that consumers would achieve significant savings by buying a product at a ‘sale’ price during one of Ausnew’s many sales, and that the sale prices were only available for a limited time, when this was not the case.
“Consumers may have been lured to purchase goods from Ausnew based on what we allege were misleading representations about the purported savings consumers could make and the artificial urgency created by the ‘last chance’ sales banners and countdown clocks,” Ms Carver said.
Alleged ‘NDIS approved’ misrepresentations
The ACCC further alleges that between 1 November 2022 and 28 July 2024, Ausnew included the words ‘NDIS Approved’ alongside advertised products in Google Shopping ads and on its website, when, in fact, the NDIS registration regime administered by the NDIS Quality and Safeguards Commission only registered NDIS providers and the NDIS does not have the function of approving or endorsing particular products independently of NDIS participants’ plans.
“We are very concerned about the impact of these allegedly misleading claims on consumers because the NDIS does not provide specific approval or accreditation for particular products,” Ms Carver said.
Alleged misrepresentations of consumer guarantee rights
The ACCC alleges that between 1 July 2021 and 28 July 2024, Ausnew’s Refund Policy, published on its website, represented to consumers that their entitlement to a refund or replacement for certain faulty goods under the consumer guarantee provisions in the Australian Consumer Law were subject to various conditions, exclusions or limitations, when this was not the case.
Consumers were told goods had to be returned to Ausnew within seven days of purchase and in their original packaging, and that replacement or store credit would be at Ausnew’s discretion. Consumers were also told that no refund, credit or exchange was possible for ‘intimate’ items such as pillows and bath safety products.
“Under the Australian Consumer Law, consumers are entitled to remedies for products which do not comply with consumer guarantees. Businesses should be aware they cannot legally apply conditions, exclusions or limits on consumer guarantee rights,” Ms Carver said.
The ACCC is seeking declarations, injunctions, penalties, costs and other orders for Ausnew’s alleged contraventions.
Background
Ausnew Home Care Service Pty Ltd (ACN 620 493 941) is a registered NDIS provider who supplies care services and operates an online shop (https://ausnewhomecare.com/) for assistive technology products and specialised equipment for aged care and people with disabilities.
The online business supplies a diverse range of products, from everyday consumer and household items such as pillows to expensive, specialised equipment and devices such as mobility scooters. Ausnew advertises its products through a range of online marketing platforms, including Google Shopping and social media platforms like Facebook, Instagram and TikTok.
In November 2024, the ACCC put businesses on notice about concerns about problematic advertising practices targeting NDIS participants
Concise Statement:
ACCC v AUSNEW HOME CARE SREVICE PTY LIMITED _ Concise Statement ( PDF 1.64 MB )
This document contains the ACCC’s initiating court document in relation to this matter. We will not be uploading further documents in the event these initial documents are subsequently amended.
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