Bedshed Penalised Over Alleged Misleading Claims About NDIS Endorsement: A Wake-Up Call for Retailers

Published: 23 June 2025

Based on an ACCC media release dated 21 May 2025

Read the original release on the ACCC website

Bedding retailer Bedshed has been hit with $39,600 in penalties after the Australian Competition and Consumer Commission (ACCC) issued two infringement notices over advertising that allegedly misrepresented products as being endorsed by the National Disability Insurance Scheme (NDIS).

The case is the latest in a string of compliance actions targeting misleading advertising aimed at NDIS participants — a highly vulnerable consumer group.

At Bane Legal Services, we don’t offer legal advice — but we do help businesses navigate complex compliance risks by connecting them with the right commercial lawyers. With over 30 years’ business experience and a wide legal network, we match you with lawyers who understand the intersection of disability services, consumer law, and retail regulation.

What Did Bedshed Allegedly Do?

According to the ACCC, Bedshed advertised on both its website and Google Ads that certain mattresses, furniture, and bedding accessories were:

• “NDIS approved”

• “NDIS permitted”

But as ACCC Chair Gina Cass-Gottlieb points out:

“The NDIS does not approve any specific goods or services and to suggest otherwise is misleading and risks taking advantage of vulnerable consumers.”

In short, there is no such thing as an ‘NDIS-approved’ product list. Funding under the NDIS is determined on an individual basis according to each participant’s plan.

A Bigger Problem: Misleading Ads Targeting Vulnerable Consumers

This case follows growing concern from regulators about businesses using deceptive NDIS-related claims to lure vulnerable customers. In November 2024, the ACCC specifically warned businesses that advertising to NDIS participants would be a focus area.

Examples of misleading conduct include:

• Describing products or services as “NDIS approved” or “NDIS certified”

• Suggesting the NDIS will fund holidays, recreational activities, or meal costs that are not eligible

• Claiming NDIS affiliation or endorsement by using “NDIS” in a business name or branding

The issue is now being tackled at a national level by 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).

Why This Matters for Franchises and Retailers

Bedshed operates as a franchise network with an online store and 43 physical locations, 11 of which are registered NDIS providers. The ACCC’s actions highlight that:

• Franchisors are not immune from scrutiny where misleading advertising occurs at a brand level

• Franchisees must also be careful with their marketing — especially when promoting to sensitive or vulnerable consumer segments

• Even registered NDIS providers can face penalties if their advertising misrepresents the nature of their services

With consumer law enforcement ramping up across the retail, health, and disability sectors, it’s crucial that businesses review their advertising claims, especially when referencing government programs like the NDIS.

Avoid Costly Missteps — Get the Right Legal Eyes on Your Ads

If your business supplies goods or services to NDIS participants — whether directly or indirectly — it’s critical to ensure every marketing statement is legally accurate. The penalties for getting it wrong are increasing, and so are the reputational risks.

At Bane Legal Services, we specialise in helping franchisors, retailers, and service providers connect with commercial lawyers who understand the intricacies of the Australian Consumer Law and NDIS-related obligations.

We’re not a law firm — but we are a trusted matchmaker with deep insight into business compliance needs.

Need to double-check your marketing for compliance before the next campaign?

Let us connect you with the right legal expert today — your first call with us is complimentary.

Disclaimer: This article is a summary and commentary on a public ACCC media release. Bane Legal Services is not a law firm and does not provide legal advice. For legal advice tailored to your circumstances, we can connect you with a qualified Australian commercial lawyer.