Bedshed Franchising Pty Ltd has faced penalties totaling $39,600 after the Australian Competition and Consumer Commission (ACCC) issued two infringement notices against the company. The ACCC claims that Bedshed made false or misleading representations in its advertising, suggesting that certain products were evaluated or approved by the National Disability Insurance Scheme (NDIS).

This enforcement action follows the ACCC's warning to businesses regarding misleading advertising practices targeting NDIS participants, which was issued in November 2024. The ACCC alleges that Bedshed's advertisements on its website and Google Ads falsely claimed that some of its mattresses, furniture, and bedding accessories were 'NDIS approved' and 'NDIS permitted.'

ACCC Chair Gina Cass-Gottlieb emphasized that the NDIS does not endorse specific goods or services, and misleading claims can exploit vulnerable consumers. Each NDIS participant has unique needs, and funding is determined individually rather than through a list of approved products. The ACCC is actively investigating other companies making similar misleading claims.

The ACCC's actions serve as a warning to all businesses that market their products to NDIS participants, stressing the importance of truthful advertising. In December 2023, the Australian Government established 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). This taskforce aims to address concerns about potential overcharging of NDIS participants and breaches of Australian Consumer Law.

Consumers who believe they have encountered false or misleading statements regarding NDIS products or services are encouraged to report these issues to the ACCC. The ACCC can issue infringement notices when it has reasonable grounds to believe a business has violated consumer protection provisions under Australian Consumer Law.

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