Participants in the National Disability Insurance Scheme (NDIS) are being targeted by NDIS providers' deceptive advertising practices and other behaviours banned by consumer law, a new report has found. Whilst these practices are not universal, the scale and types of complaints we're hearing about is concerning.
Working in a taskforce with the National Disability Insurance Agency (NDIA) and NDIS Quality and Safeguards Commission, the ACCC has identified trends of problematic conduct that may breach the Australian Consumer Law, including instances of providers wrongly charging for essential disability support products that were not supplied as agreed and falsely claiming services or products are 'NDIS-approved or eligible for NDIS funding', when this is not the case.
The ACCC is particularly concerned about several key issues in NDIS markets:
- False and misleading advertising by providers
- Providers not honouring consumer guarantees protections
- Issues with contracts, such as providers failing to provide clear written contracts or including unfair terms
- Providers charging for products or services not supplied or delayed
- Concerns about misleading claims in relation to Specialist Disability Accommodation
- Impacts on First Nations NDIS participants
- Scams affecting NDIS participants.
"Conduct can be particularly harmful given products and services sought or acquired may be essential for Australians who experience a disability to participate in everyday life," ACCC Deputy Chair Catriona Lowe said.
"Harm can range from financial loss and life-limiting impacts, to compromising the safety and physical wellbeing of NDIS participants. Such conduct is completely unacceptable and the ACCC will continue to work with taskforce agencies to protect NDIS participants, educate and hold providers that continue to do the wrong thing accountable."
Since 2024 the ACCC has prioritised improving compliance with the Australian Consumer Law by businesses that provide NDIS-funded supports, and, alongside the NDIA and NDIS Commission, has expanded its efforts to address misconduct and increase awareness of the laws relating to NDIS provider conduct.
ACCC enforcement action
The ACCC has taken proactive enforcement action in this period, instituting legal proceedings against a provider for alleged breaches of the Australian Consumer Law in 2024. In addition, Bedshed and Thermomix paid infringement notices issued by the ACCC for allegedly making misleading claims about NDIS endorsements.
Support provider Mable Technologies provided a court-enforceable undertaking to the ACCC after admitting using unfair contract terms, in breach of the Australian Consumer Law.
"We have achieved positive outcomes to improve protections for NDIS participants and continue to investigate other potential misconduct," Ms Lowe said.
"NDIS providers should be aware that we are closely monitoring and responding to how they advertise and supply their products and services to consumers," Ms Lowe said.
The ACCC is also working closely with state and territory consumer protection agencies, sharing intelligence and coordinating work and jointly enforcing the Australian Consumer Law.
"We are also working closely with other taskforce agencies in ensuring information is referred to the responsible agency to act on at an early stage," Ms Lowe said.
To assist in raising awareness, we will also be publishing a summary of the Report on our website with printable factsheets for both participants and providers.
If an NDIS participant thinks a business has made false or misleading statements about products or services, including whether they are funded by the NDIS, or if they consider their consumer rights have not been met, they can make a report to the ACCC.
Further information for NDIS participants and providers is available on the ACCC website.
Background
The NDIS provides funding to eligible people with disability. Since 2024, the ACCC has prioritised improved compliance with the Australian Consumer Law by businesses that supply NDIS-funded supports, known as providers.
The two main regulators responsible for delivering the NDIS are:
- The NDIA which sets participants with plans and funding, provides price guidance for supports, processes claims, and investigates alleged fraud within the scheme.
- The NDIS Commission which registers and regulates NDIS providers. It also monitors providers' compliance with the NDIS Code of Conduct and practice standards, and receives and responds to concerns, complaints and reportable incidents about providers.
The Australian Consumer Law applies to all transactions between NDIS participants and providers. The ACCC and other Australian Consumer Law regulators can investigate NDIS related dealings where there is a potential breach of the Australian Consumer Law.
On 17 December 2023, the government established the Fair Pricing and Australian Consumer Law Taskforce consisting of the ACCC, the NDIA, and the NDIS Commission. The Taskforce was established to address harms affecting participants, including potentially paying higher prices for goods or services compared to non-NDIS consumers, and conduct by providers that may breach the Australian Consumer Law.
