Australian Consumer Law : Your Rights & Business Obligations

24 September 2025 in Commercial Lawyers | 6 min read | skip to FAQs

This article explores the packaging and labelling requirements under the Australian Consumer Law (ACL), which is found in Section 29 of Schedule 2 of the Competition and Consumer Act 2010 (Cth) (the Act). This article particularly focusses on false or misleading representations. We also discuss relevant industry specific legislations. These include Schedule 2 of the Act and legislation relevant to consumer goods including cosmetics, in the Consumer Goods (Cosmetics) Information Standard 2020 (Cth) and food, in the Food Standards Australian New Zealand Act 1991 (Cth).

Packaging and labelling contain crucial representations of products to consumers, which significantly influences consumer purchasing decisions. In Australia, strict laws govern packaging and labelling are enforced to ensure accurate representation and consumer protection. Non-compliance with these laws can result in severe penalties, fines and damage to a business’s reputation.

Understanding Section 29 protection

Section 29(1) of the Australian Consumer Law prohibits specific false or misleading representations when made in trade or commerce.  The key elements of section 29(1) include the following:

False or Misleading Packaging or Labelling

The determination of whether a representation on packaging or labelling is false (that is, contrary to fact) or misleading is a question of fact to be assessed on a case-by-case basis (see also Ducret v Chaudhary’s Oriental Carpet Palace Pty Ltd (1987) 16 FCR 562). Notably, the phrase “false or misleading” under section 29 of the ACL is considered interchangeable with the phrase “misleading or deceptive” as used in section 18 of the Australian Consumer Law as confirmed in the case REA Group Ltd v Fairfax Media Ltd [2017] FCA 91.

Representation

The concept of “representation” is considered narrower than “conduct”. However, representations extend beyond mere words and may include images, graphics, symbols, shape or even predictions.

Key Representations on Packaging and Labelling

Packaging and labelling typically includes important representations regarding the following aspects of a product:

Quality Representations:

For example, hair colouring products may contain representations about the quality of colour, duration of colour, coverage, and results on their packaging.

Sustainability Representations:

Packaging may have words stating a brand or product’s commitment to environmental standards or principles. For example, this may include formulations using natural ingredients or that it is biodegradable.

Charity Representations:

An example is TOMS shoes, which features the statement “with every pair you purchase, TOMS will give a pair of new shoes to a child in need one for one” on its shoe box packaging. For many consumers, the great appeal of TOMS was the “Buy-One-Give-One” offer represented on its packaging.

Safety Representations:

Cosmetic product packaging often contains cautions and safety instructions.

Other Representations:

For example, Quo Beauty uses rainbow colours on its Pride Collection packaging to express support for the LGBTQ+ community.

Further to the above, false or misleading representations on packaging and labelling may also include:

1. Inadequate or Incorrect Information: this includes when representations on product packaging are incorrect and inadequate, and when products have been mislabelled or inadequately labelled.
2. Omissions: this includes when there is a defect in information and a failure to provide necessary warnings about product risks.

False or Misleading Representations under Section 29 of ACL

Section 29(1)(a) of the ACL specifically prohibits a person making false or misleading representations that goods are of a particular standard, quality, value, grade, composition, style, or model. Such conduct is also made an offence by section 151(1)(a) of the ACL adjusted turnover during the breach period. As such, false or misleading information on packaging that fails to accurately represent these aspects can fall within this provision.

Further, section 29(1)(b) of the ACL provides similar prohibitions relating to false or misleading representations of services of a particular standard, quality, value or grade. It is worth noting that the prohibitions under section 29(1)(a) and section 29(1)(b) are not mutually exclusive (see Doolan v Waltons Ltd (1981) 39 ALR 408 (FCA), Lockhart J).

Other prohibited false or misleading representations on packaging and labelling can also relate to:

1)   false or misleading representations that goods or services have sponsorship, approval, performance characteristics, accessories, uses or benefits (see sections 29(1)(g) and 151(1)(g) of the ACL);

2)   false or misleading representations with respect to the price of goods or services (see sections 29(1)(i) and 151(1)(i) of the ACL);

3)   false or misleading representations concerning the place of origin of goods (see sections 29(1)(k) and 151(1)(k) of the ACL). This includes representations that the goods were grown, produced, made, or manufactured in, or otherwise originate from a particular country in their product labelling and packaging;

4)   false or misleading representations concerning the existence, exclusion or effect of any condition, warranty, guarantee, right or remedy (see sections 29(1)(m) and 151(m) of the ACL).

Penalties for False or Misleading Representations

The penalties for making false or misleading representations are severe. Under section 151(5) of the ACL, the maximum civil and criminal penalty for a company is the greater of:

1. AUD $50,000,000.00;
2. Three times the value of any commercial benefit derived from the false or misleading representation; or
3. 10% of the company’s annual turnover during the 12-month period ending at the end of the month in which the offence occurred.

For individuals, the maximum penalty for making false and misleading representations is a fine of AUD $2,500,000.00 and is punishable on conviction.

It is worth noting that any impugned conduct or representations often involve contravention of multiple sections under the ACL. There is a significant overlap between prohibitions of “misleading or deceptive conduct” under section 18 of the ACL and “false or misleading representation” under section 29 of the Australian Consumer Law, as well as prohibitions of unfair practices. For instance, the forms of misrepresentations prohibited by section 29(1) of the ACL are also made criminal offences by a set of mirror provisions in Part 4-1 of the ACL, which are imposed on a strict liability basis, with pecuniary penalties under section 224 of the ACL.

Defences and Onus of Proof

Sections 207 and 208 of the ACL provide defences if the contraventions in relation to false or misleading representation under section 29(1) and 151 was caused by:

1. a reasonable mistake of fact; or
2. by third-party actions beyond the defendant’s control, provided reasonable precautions were taken and due diligence exercised to avoid the contravention.

Industry-Specific Labelling Standards and Regulations

Beyond the specific requirements under the Australian Consumer Law, products must comply with industry-specific laws and regulations. For example:

Cosmetic ingredients Labelling

The Consumer Goods (Cosmetics) Information Standard 2020 (Cth) mandates clear labelling of cosmetic ingredients. Mandatory information includes cosmetic ingredients, manufacturers name and address, and any warning signs or statements.

Additional labelling requirements for hand sanitisers include the requirement for products containing alcohol to display warnings such as keeping the product out of reach of children, using it externally only, and avoiding exposure to fire and heat due to its flammability.

The legislative purposes of imposing strict labelling requirements are to:

1. reduce the risk of customers unintentionally exposing themselves to ingredients causing allergic reactions; and
2. reduce the risk of harm and injuries to consumers, including ingestion by children.

Food Labelling

Food labelling is subject to standards in The Australia New Zealand Food Standards Code (Food Standard Code) and pursuant to the Food Standards Australian New Zealand Act 1991 (Cth). Standard 1.2.1 of the Food Standards Code sets out important requirements to have labels or otherwise provide information for food that is:

1. for retail sale (Division 2);
2. sold to caterers (Division 3); and
3. for all other sales of food (Division 4).

For example, for retail sales, food labelling is generally required to provide accurate and adequate information in relation to:

1. advisory statements, warning statements and declaration;
2. a statement of ingredients;
3. date marking information;
4. storage conditions and directions for use;
5. information relating to nutrition, health and related claims;
6. nutrition information;
7. name of the food; and
8. name and address of the supplier

(see standard 1.2.1-6 of the Food Standards Code)

Key Takeaways

Understanding and complying with packaging and labelling regulations under Australian Consumer Law is essential for businesses to avoid legal risks and maintain consumer trust. False or misleading representations can lead to significant penalties and damage to a company’s reputation. Companies must also ensure that their product labelling adheres to the stringent requirements under the ACL and any relevant industry-specific regulations. For a related article please see our article on product labelling Misleading or Deceptive Conduct: Product Labelling

How can BSM Sydney Lawyers assist you?

If you are a business seeking advice on your product labelling and packaging, our expert commercial lawyers with over 30 years of experience offer tailored advice to ensure compliance with Australian Consumer Law and applicable industry standards to minimise legal risks. For consumers concerned about potential breaches of their legal rights, our lawyers are able to represent you in consumer protection claims. BSM Sydney Lawyer offers a free 20-minute consultation with a business and commercial lawyer.

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