The Australian Competition and Consumer Commission (ACCC) has initiated proceedings in the Federal Court against Ausnew Home Care Service Pty Ltd, a registered provider under the National Disability Insurance Scheme (NDIS).
The ACCC alleges that the company engaged in misleading conduct related to its online sales of aged care and disability products.
The claims include accusations that Ausnew:
The company is also accused of providing misleading information about consumer rights under Australian Consumer Law (ACL).
Commenting on the regulator’s decision to take legal action against Ausnew, ACCC commissioner Liza Carver said: “We have taken this legal action against NDIS provider Ausnew because we were concerned it was making misleading claims to consumers, many of whom were elderly or with a disability requiring support.”
The ACCC asserts that between November 2022 and December 2023, Ausnew frequently advertised discounted prices alongside strikethrough prices, suggesting significant savings. The sales were often accompanied by banners and countdown clocks that implied the discounts were time-limited.
The regulator alleges that these practices gave consumers the impression that the products were regularly sold at the higher, strikethrough prices and that the discounts were only available for a short period. According to the ACCC, this was not accurate.
Between November 2022 and July 2024, Ausnew allegedly described certain products as “NDIS approved” in advertisements.
The ACCC contends that the NDIS Quality and Safeguards Commission only registers providers and does not approve individual products.
“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,” Carver said.
The ACCC further alleges that Ausnew’s refund policy, in place from July 2021 to July 2024, imposed conditions that were inconsistent with the rights guaranteed under the ACL.
Consumers were reportedly informed that refunds or replacements were subject to strict conditions, including a seven-day return window, original packaging requirements, and limitations on refunds for certain “intimate” items like pillows and bath aids.
Carver explained that under the Australian Consumer Law, businesses cannot impose conditions that restrict consumers’ entitlement to remedies for faulty goods.
“Businesses should be aware they cannot legally apply conditions, exclusions, or limits on consumer guarantee rights,” she said.
The ACCC is seeking penalties, declarations, injunctions, and other orders in response to Ausnew’s alleged breaches of consumer law.
