Bedshed pays penalties for allegedly misleading customers over NDIS endorsement

A bedding company has been slapped with a hefty fine after the consumer watchdog found it allegedly misled vulnerable customers.

Bedding retailer Bedshed Franchising Pty Ltd has been hit with $39,600 in penalties after the consumer watchdog found it allegedly misled customers with false claims about National Disability Insurance Scheme (NDIS) approval.

The Australian Competition and Consumer Commission (ACCC) issued two infringement notices to Bedshed, alleging the company falsely advertised that some of its mattresses, furniture, and bedding accessories were “NDIS approved” and “NDIS permitted” — both on its website and through Google Ads.

But the ACCC said no such endorsements exist.

ACCC Chair Gina Cass-Gottlieb. Picture: John Feder/The Australian

“The NDIS does not approve any specific goods or services and to suggest otherwise is misleading and risks taking advantage of vulnerable consumers,” ACCC Chair Gina Cass-Gottlieb said.

The action follows a November 2024 ACCC crackdown on misleading advertising aimed at NDIS participants, warning businesses to clean up their claims or face enforcement.

“Each NDIS participant has unique needs, and what’s funded under their plan is determined individually, not through a list of approved products,” Ms Cass-Gottlieb said. “Targeting consumers experiencing vulnerability or disadvantage with misleading advertising is particularly concerning, and we are continuing to investigate companies making similar claims.”

Bedding retailer Bedshed Franchising Pty Ltd has been hit with $39,600 in penalties.

The ACCC stressed that any suggestion a product is endorsed by the NDIS could distort consumer decisions, especially among people living with disability or their carers, who may believe they’re required to choose certain products.

“These infringement notices should serve as a warning to all businesses that advertise their products or services to NDIS participants — your advertising must reflect the facts,” Ms Cass-Gottlieb added.

The ACCC’s action comes as part of a wider government push to protect the rights of NDIS participants. In December 2023, the Australian Government launched the NDIS (Fair Price and Australian Consumer Law) Taskforce, which includes the ACCC, the NDIS Quality and Safeguards Commission, and the National Disability Insurance Agency (NDIA). The taskforce is tackling concerns that participants are being overcharged or misled.

NDIS participants who believe a business has made false claims — including saying a product is NDIS-approved — or who think their consumer rights have been breached, are encouraged to report it directly to the ACCC.

Originally published as Bedshed pays penalties for allegedly misleading customers over NDIS endorsement