Bedshed Franchising has incurred penalties totalling $39,600 following the issuance of two infringement notices by the Australian Competition and Consumer Commission (ACCC). The penalties relate to alleged false or misleading representations concerning the endorsement of products by the National Disability Insurance Scheme (NDIS) in its advertising.

The ACCC alleges that Bedshed advertised certain products on its website and through Google Ads as being 'NDIS approved' and 'NDIS permitted'. The ACCC has clarified that the NDIS does not approve specific goods or services, and any suggestion to the contrary is misleading.

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

This action by the ACCC follows a notice issued in November 2024, which highlighted problematic advertising practices targeting NDIS participants. The NDIS (Fair Price and Australian Consumer Law) Taskforce was established in December 2023 to address concerns related to pricing and breaches of consumer law affecting NDIS participants.

Bedshed operates an online store and 43 physical stores across Western Australia, Victoria, Queensland, the Australian Capital Territory, and New South Wales. Of these, 11 stores are registered as NDIS providers.

In a related development, the ACCC took legal action in December 2024 against Ausnew Home Care Service Pty Ltd for similar alleged misleading representations about NDIS approval.

The ACCC has the authority to issue infringement notices when it believes there has been a breach of consumer protection provisions under the Australian Consumer Law. However, payment of a penalty from an infringement notice does not constitute an admission of contravention of the Australian Consumer Law.

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

"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."