How Can Your Business Avoid Misleading or Deceptive Conduct? (2026 Updated)

When you’re running a business, it’s easy to think “misleading or deceptive conduct” only happens when someone is intentionally dishonest.

In reality, it often happens through small oversights - a promo that’s worded a bit too broadly, a “from $X” price that isn’t really available, or a social media post that implies results you can’t guarantee.

This 2026 update reflects how much more advertising, selling and customer communication now happens online (and how closely regulators and customers can scrutinise what you say). The good news is that, with a few practical systems in place, you can drastically reduce your risk while still marketing confidently.

Below, we’ll walk through what “misleading or deceptive conduct” means in New Zealand, where businesses most commonly get caught out, and the steps you can take to protect yourself from day one.

What Is Misleading Or Deceptive Conduct In New Zealand?

In New Zealand, misleading or deceptive conduct is primarily regulated by the Fair Trading Act 1986 (FTA).

In plain terms, the FTA says you must not, in trade, engage in conduct that is misleading or deceptive (or likely to mislead or deceive). This can cover:

• things you say (written or spoken);
• things you show (images, demonstrations, before/after shots);
• things you don’t say (important omissions); and
• the overall impression created by your marketing, pricing and sales practices.

A key point that surprises a lot of business owners: you don’t necessarily have to intend to mislead. If the overall conduct is likely to mislead a reasonable customer in the circumstances, you may still have an issue.

How Is This Different From Customer Guarantees?

The FTA often overlaps with other consumer laws, particularly the Consumer Guarantees Act 1993 (CGA). The CGA focuses more on the guarantees that apply when you supply goods and services to consumers (like acceptable quality, fitness for purpose, and reasonable care and skill).

Practically, a dispute might involve both:

• The FTA: “Your ad said this product would do X.”
• The CGA: “The product didn’t perform as a reasonable consumer would expect.”

If you sell to consumers, your returns and fault-handling approach should align with the CGA, and your marketing should align with the FTA. If you’re unsure where your risk sits, having clear Business Terms can help set expectations and reduce misunderstandings (without trying to contract out of consumer rights).

What Can Happen If You Get It Wrong?

Misleading conduct can trigger complaints, refunds, investigations, and formal enforcement action. Even where a situation doesn’t escalate, it can still cost you plenty in time, reputational damage, and lost trust.

For many small businesses, the biggest “hidden cost” is that once a pattern of complaints starts, it can be very hard to reset customer confidence.

Where Businesses Commonly Accidentally Mislead Customers

Most businesses don’t set out to mislead anyone. The risk usually comes from fast-moving marketing, delegated posting, and “industry standard” claims that haven’t been checked properly.

Here are some of the most common traps we see.

Pricing And Promotions That Don’t Match Reality

Pricing issues are one of the quickest ways to end up in hot water, because customers notice them immediately.

Common problem areas include:

• Hidden fees (booking fees, service fees, admin fees) that aren’t clearly disclosed upfront.
• “From $X” pricing where $X is not genuinely available, or only available in unrealistic circumstances.
• Discount claims (e.g. “Was $200, now $120”) where the “was” price wasn’t a genuine prior selling price.
• Limited-time offers that quietly continue for weeks (creating false urgency).
• Bundle deals that omit key conditions (like minimum term, auto-renewal, or extra add-ons).

If you’re using quotes, make sure you understand whether your quote might be treated as binding in practice - a lot of disputes start because the customer thinks “this is the price” while the business thinks “this is an estimate.” A short internal policy (and consistent wording) helps, and it’s also worth understanding when Is A Quotation Legally Binding? becomes a real issue.

Overpromising Results (Especially In Services)

Results-based marketing is powerful - and risky.

This shows up a lot in industries like:

• health and wellness;
• beauty and cosmetic services;
• marketing and lead generation;
• coaching and consulting; and
• trades and home improvement (“we’ll fix it permanently”).

Common examples of overpromising include:

• guaranteeing outcomes that depend on customer behaviour;
• presenting typical results as if they’re guaranteed results;
• using testimonials that imply results you can’t consistently deliver; or
• promoting “before and after” images without context (timeframes, other variables, individual differences).

A safer approach is to describe what you will do (your process, deliverables, inclusions) rather than what the customer will get as an outcome. Clear Service Agreement terms can also help you pin down scope, timelines, and what is (and isn’t) included.

Misleading “Fine Print” And Unfair Customer Assumptions

Relying on tiny disclaimers at the bottom of a page is one of the most common mistakes. If the headline claim is strong and the disclaimer is subtle, the overall impression can still be misleading.

This often appears as:

• key exclusions hidden in long terms;
• important conditions only mentioned after payment;
• subscription auto-renewals that aren’t made clear at sign-up; or
• “free trial” offers that convert into paid plans without a clear reminder.

If you run an online store or take bookings online, make sure your Website Terms And Conditions are clear and match what your website actually does (delivery timeframes, cancellations, exchanges, subscriptions, and payment terms).

Misrepresenting Who You Are Or Who You Work With

Sometimes the misleading impression isn’t about the product - it’s about your business.

For example, risk increases if you:

• imply you’re “officially affiliated” with another brand when you’re not;
• use a business name that looks confusingly similar to a competitor;
• suggest you have qualifications, licences or certifications that you don’t;
• present contractors as employees (or vice versa) in a way that confuses customers; or
• use “NZ owned” or “NZ made” style claims without being able to substantiate them.

It’s also important to be careful with how you describe your structure and responsibilities in contracts and onboarding documents - especially if you’re engaging external people to provide services. If you’re not sure about the correct classification, it’s worth reading up on Contractor Vs Subcontractor so your marketing and paperwork stay consistent.

How To Build A “Truth-First” Marketing Process (Without Killing Your Sales)

Avoiding misleading conduct doesn’t mean you have to make your marketing bland or cautious. It means you need a repeatable process so your claims stay accurate as you grow.

Here’s a simple approach many small businesses can actually implement.

1. List Your Core Claims (And Treat Them Like “Product Features”)

Start by writing down the claims you make repeatedly across your website, ads, packaging, proposals and sales calls. For example:

• “Same-day service”
• “NZ’s best value”
• “Guaranteed results”
• “Eco-friendly and non-toxic”
• “Fixed price - no surprises”
• “24/7 support”

These are the phrases most likely to be scrutinised if there’s a complaint. Once you’ve listed them, you can decide whether each one is:

• always true (safe to use broadly);
• sometimes true (needs conditions stated clearly); or
• aspirational (should be removed or rewritten).

2. Keep Evidence For Anything That Sounds Like A Fact

If you’re making a factual claim, you should be able to substantiate it.

That evidence might be:

• lab reports, certifications, supplier statements, testing documents;
• delivery logs and performance data;
• pricing history (to support discounts);
• photos with dates and context; or
• customer survey data (if you’re saying “X% of customers…”).

You don’t need to publish all of this evidence publicly. But you should be able to produce it if the claim is challenged.

3. Make Conditions Obvious (Not Buried)

Where you need conditions, the safest practice is to put them close to the claim - not hidden in a footer.

For example:

• Instead of: “Free delivery” (with conditions in tiny text)
• Use: “Free delivery on orders over $75 within Auckland metro.”

This keeps customers happy too, because it reduces that “wait… what?” moment at checkout.

4. Train Your Team On “Sales Promises”

Misleading conduct often happens verbally, not just online. A team member trying to be helpful might promise something that isn’t company policy.

A few practical controls that help:

• give staff approved wording for common questions (“Can I cancel?” “How long does it take?”);
• use checklists for quotes and proposals so inclusions/exclusions are consistent;
• record key promises in writing (email follow-up after calls); and
• make sure everyone understands who can approve exceptions or refunds.

If you have staff, it’s also worth ensuring your internal expectations are properly documented from the start with an Employment Contract that matches how you actually operate (including any commission or sales incentives, if applicable).

What About Online Reviews, Influencers, And Social Media Ads?

Digital marketing is one of the biggest risk areas because content is quick to publish, easy to share, and often created by multiple people (your team, agencies, affiliates, influencers, and customers).

Even if someone else posts the content, you can still wear the consequences if it’s promoting your business in a misleading way.

Testimonials And Reviews: Use Them Carefully

Testimonials can be incredibly effective, but they shouldn’t create a misleading impression.

Some practical guidelines:

• Don’t cherry-pick reviews in a way that implies a typical experience if the results are actually unusual.
• Don’t edit testimonials so heavily that they become inaccurate.
• Be careful with “results” claims (weight loss, income, health outcomes) unless you can show they’re typical or clearly presented as individual outcomes.
• If a review includes a claim you wouldn’t make yourself, consider whether reposting it creates risk.

If you’re working with influencers, brand ambassadors or affiliates, set expectations in writing. That usually includes what they can say, what must be disclosed, and what claims are off-limits. This is where an Influencer Agreement can do a lot of heavy lifting.

Before/After Images And Demonstrations

Before/after content can be misleading if it leaves out key information.

For example:

• Was the “after” photo taken under different lighting?
• Was the result achieved using multiple products/services, not the one being advertised?
• Was the timeframe unusually long (or unusually short)?

Where possible, include context so the impression is fair. If you can’t provide context, consider whether the image should be used at all.

Retargeting And Data Use: Don’t Forget Privacy

Misleading conduct isn’t only about the ad copy - it can also be about how you collect and use customer data.

Under the Privacy Act 2020, you need to be open and transparent about what personal information you collect, why you’re collecting it, and who you might share it with. If you’re running email campaigns, pixels, retargeting ads, or customer loyalty programs, having a clear Privacy Policy helps set expectations and reduces complaints.

This is especially important if customers are signing up through forms, entering competitions, or creating accounts - anywhere data collection is part of the “deal”.

How Contracts And Business Documents Can Reduce Misleading Conduct Risk

A lot of misleading conduct claims start with a gap between what the customer thought they were buying and what the business thought it was selling.

Clear paperwork won’t fix bad advertising, but it can:

• make your scope and deliverables clearer;
• reduce misunderstanding about timeframes and exclusions;
• create a written record of what was agreed; and
• help you resolve disputes faster when something goes wrong.

Use Clear Customer-Facing Terms

If you sell products or services, your customer-facing terms should align with your marketing. For example:

• If you advertise “easy cancellations”, your cancellation policy should actually be easy.
• If you advertise “fast shipping”, your shipping timeframes should be realistic (including peak periods).
• If you advertise “fixed price”, your exclusions and variations process should be crystal clear.

For service businesses, a tailored Service Agreement (or a master agreement plus statements of work) often helps prevent disputes about scope creep and “I thought that was included.”

Be Careful With Disclaimers (They’re Not A Free Pass)

Disclaimers can help clarify assumptions, but they don’t automatically protect you if the overall message is misleading.

A disclaimer is most useful when it:

• is easy to see and understand;
• clarifies a specific limitation (rather than trying to undo the whole headline claim); and
• matches how customers actually interact with your website, quote, or product page.

If you’re unsure whether your disclaimers and customer terms are doing what you think they are, it’s usually worth getting them reviewed as part of a broader risk check.

Get Your Internal House In Order As You Scale

As your business grows, the risk of inconsistent messaging grows too - because more people are involved in marketing, sales and delivery.

That’s where internal processes and documentation matter. For example:

• a staff handbook that covers customer communication standards;
• templates for quotes and proposals;
• checklists for promotions and pricing changes; and
• a review process for website updates and ad campaigns.

It can feel like “extra admin” at first, but it usually saves you time (and stress) later.

Key Takeaways

• In New Zealand, misleading or deceptive conduct is mainly regulated by the Fair Trading Act 1986, and it can apply even if you didn’t intend to mislead.
• The biggest risk areas are pricing and promotions, “too good to be true” performance claims, and relying on fine print to correct a misleading headline impression.
• Keeping evidence for factual marketing claims (discounts, performance, certifications, delivery times) is one of the simplest ways to protect your business.
• Make key conditions obvious and close to the claim, so customers aren’t surprised later during checkout or delivery.
• Train your team on what they can promise customers, because misleading conduct can happen in sales calls and messages, not just on your website.
• Use clear, tailored customer terms and contracts to align expectations, reduce misunderstandings, and resolve disputes faster when something goes wrong.

If you’d like help reviewing your advertising, pricing, website terms, or customer contracts so you’re protected from day one, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.