‘Misleading’: NDIS provider taken to court

The ACCC has commenced proceedings in the Federal Court against a Sydney-based aged care service, in a move the Albanese Government has welcomed as sending a “strong message” to other NDIS providers.

Australia’s competition watchdog is taking an NDIS provider to court alleging the company made “false” and “misleading” claims about products sold to customers who were elderly or with a disability.

Sydney-based Ausnew Home Care Service, a registered my aged care and NDIS provider operating nationally selling everything from pillows to mobility scooters, has been accused of falsely implying products were on limited time sales as well as tagging some items as “NDIS approved” – an endorsement it does not have authority to make.

As a result the Australian Competition and Consumer Commissioner (ACCC) has commenced proceedings in the Federal Court against Ausnew, a move the Albanese Government has welcomed as sending a “strong message” to other NDIS providers.

The ACCC is taking an NDIS provider to court alleging the company made “false” and “misleading” claims about products sold to customers who were elderly or with a disability.

“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,” ACCC Commissioner Liza Carver said.

Ausnew advertised its products online via Google Shopping and social media platforms like Facebook, Instagram and TikTok.

The ACCC warned NDIS providers do not have the function of approving or endorsing particular products independently of NDIS participants’ individual 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.

NDIS Minister Bill Shorten has welcomed the ACCC’s action, saying it put dodgy providers “on notice”.

NDIS and Government Services Minister Bill Shorten. Picture: NewsWire / Martin Ollman

“There is no such thing as an ‘NDIS approved’ or ‘NDIS accredited’ supports outside of what is included in a participants plan from the NDIA,” he said.

“There’s no excuse for providers ripping off NDIS participants and older members of the community, and these government agencies will continue to work together to uphold the integrity of the Scheme, and most importantly, keep NDIS participants safe.”

Mr Shorten said the joint agency task force between the ACCC, NDIS Commission and NDIA was “giving power to participants to put the tough questions to providers and enforce their rights”.

“We established this joint agency taskforce in March this year to address fair pricing and strengthen participant’s understanding of their rights. I am pleased we are continuing to see strong results – especially as this provider targeted members of the community that have a disability or were elderly,” he said.

Assistant Minister for Competition, Charities and Treasury Dr Andrew Leigh said people with disability have a right to pay a “fair and reasonable rate for services and not to be pressured into buying a support or service” they “don’t want or need”.

“The ACCC will continue to take action against providers who breach competition and consumer laws,” he said.

Originally published as ‘Misleading’: NDIS provider taken to court