Businesses peddling falsely labelled NDIS-approved mattresses, vacuums fined

Hundreds of businesses have been caught peddling falsely labelled NDIS-approved products and services including meals, mattresses, mental health packages and even a cordless vacuum cleaner.

Hundreds of businesses have been pinged following a crackdown on businesses attempting to peddle NDIS-approved products. Picture: Martin Ollman

Hundreds of businesses have been referred to the consumer watchdog for peddling NDIS-approved products like ready-made meals, mattresses, cleaning services and mental health packages following a year-long crackdown.

Well-known retailers like Bed Shed and popular appliance brand Thermomix were among the 604 cases referred to the ACCC.

Six matters were also referred to the Fraud Fusion Taskforce, and 112 cases were referred to the NDIS Commission over breaches of the NDIS Provider Code of Conduct, with affected businesses coughing up more than $100,000 in fines.

In May of this year, Thermomix manufacturer Vorwerk Australia was forced to pay $79,200 after promoting its TM6, an all-in-one cooking and blending appliance, and Kobold cordless vacuum and mop as being endorsed by the NDIS.

Bedshed was also hit with a $39,600 fine over misleading claims its mattresses, furniture and bedding were NDIS approved and permitted.

Other examples which were referred to the ACCC over suspected breaches of Australian consumer law include NDIS ready-made meals, mental health tool boxes and care packages advertised with a ‘I love NDIS’ logo, emergency NDIS accommodation and “NDIS-approved cleaning services”.

Rules outlined by the National Disability Insurance Agency clearly state the body does not endorse or approve products and services.

NDIS Minister Jenny McAllister put businesses which target NDIS participants. Picture: Martin Ollman

NDIS Minister Jenny McAllister said there was no tolerance for businesses which mislead “people with disability for profit”.

This comes after Labor introduced laws which will allow the NDIS Commissioner to hit a business or person with an anti-promotion order, with maximum fines of up to $40,000 for noncompliance.

“If a business is purposefully deceiving NDIS participants to make a quick buck then

it will be held accountable,” she said.

Assistant Minister for Productivity, Competition, Charities and Treasury Andrew Leigh said targeting people with disabilities and their families is a “gross breach of trust”.

“It is a deliberate attempt to drain public funds set aside for their support,” he said.

“If your business model relies on trying to trick people with disability, expect

consequences.”

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Originally published as Businesses peddling falsely labelled NDIS-approved mattresses, vacuums fined