Advertising checklist
OFFICE
Department of Commerce
Fact Sheet
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ADVERTISING
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Unsure if the
advertisement complies?
Phone the Office of Fair
Trading on 13 32 20.
for the use of media staff
FTD04
This checklist is a guide for staff who
process applications for advertising.
The Office of Fair Trading wants to
ensure readers are not misled when they
respond to advertisements appearing in your
publication.The checklist is a guide to the
legal requirements applying to various
categories of advertising.
Credit
When an advertisement states the amount of
any repayment, the Annual Percentage Rate
(APR) must be disclosed. If fees and charges
are payable, then the advertisement must
disclose their existence.The actual amount
doesn’t have to be stated, but the
advertisement must indicate they apply.
Any advertisement showing an annual
percentage rate must also show a
comparison rate. Comparison rates give a
clearer picture of the true cost of loans. By
law, comparison rate advertising must be
accompanied by the following words:
‘WARNING:This comparison rate
applies only to the example or examples
given. Different amounts and terms will
result in different comparison rates. Costs
such as redraw fees or early repayment
fees, and cost savings such as fee waivers,
are not included in the comparison rate
but may influence the cost of the loan.’
Checklist
• APR - Annual Percentage Rate
• fees and charges apply
• comparison rate (with warning)
Reference: Consumer Credit (NSW)
Code Part 9A
Motor dealers
All advertisements must include the name
of the licence holder (whether an individual,
business name or company), together with
their licence number and phone number.
The registration number of the second-hand
www.fairtrading.nsw.gov.au
December 2004
motor vehicles mentioned must also be
included.
The term ‘on road costs’,‘ORC’ (or any
other abbreviation) is prohibited. It’s not
specific enough. It must not be used by
motor dealers in their advertising.
Checklist
• motor dealer's name (eg. company
or business name)
• licence number and phone number
• registration numbers of second-hand
vehicles advertised
• for new cars, the dollar amount of dealer
charges must be stated
• the advertisement must also state that
government and statutory charges apply
(if not included in the price)
Reference: Motor Dealers Regulation 1999
cls.50, 54, 55
Building trade
The licensee’s name, as appearing on the
licence, and licence number must be shown
in the advertisement.
Alternatively, if the licensee has a business
name registered under the Business Names
Act 1962 in respect of work to which the
licence applies, that name can be included.
This requirement applies to all residential
building work where the work to be done
(labour and materials) exceeds $1,000. It also
applies to specialist work (regardless of cost)
ie plumbing, gasfitting, refrigeration or air-
conditioning.
Checklist
• name of licence holder (or registered
business name) as shown on licence
• licence number with correct category
of work
References: Home Building Act 1989 Part 2
Div 1 s.4; Part 2 Div 2 ss.12-16; Part 2A; Part
2B ss.17-18; Home Building Regulation 1997
Part 6 cl. 63-64.

Other fair trading
information
• Business names
• Running a business
• Co-operatives
• Tenancy
• Property management
• Selling your home
• Conveyancing
• Strata schemes
• Home building
• Product safety
• Buying a car or boat
• Credit
• Shopping
• Retirement villages
• Residential parks
• Other fair trading issues
✆ 13 business
32 20
hours
Business names
When a business operates under a name
other than that of the proprietor, that name
must be registered under the Business Names
Act 1962.The registered name must be
shown in all advertising in connection with
carrying on that business.
Checklist
• business name as registered
Reference: Business Names Act 1962 s.20
False or misleading
representations
Employment or business
opportunities
Section 46 of the Fair Trading Act 1987
stipulates that people seeking employment
should not be misled as to the availability,
nature, terms or conditions of employment.
Watch for
• payment required/send money
• work from home schemes
• computer based gambling schemes
• guarantee of employment
• youth/aged targeted
• pyramid schemes/get rich quick schemes
• envelope stuffing
• betting and gambling systems
• investment schemes
References: Fair Trading Act 1987 ss.42, 44(e),
46, 54, 56;Trade Practices Act 1974 ss.52, 53B,
59, 61
Sale of land
Watch for
• description, with regard to claims
of views and building etc.
• council requirements relating to zoning
References: Fair Trading Act 1987 ss.42,45(1);
Trade Practices Act 1974 ss.52, 53A
Products or services
Watch for
• unrealistic claims
• exaggerated claims relating to the
effectiveness, speed with which results
can be obtained, ease of use or suitability
of products or services. Failure to
disclose the limitations of a product
FTD04 Advertising checklist for the use of media staff
or service may amount to misleading
or deceptive advertising issues
References: Fair Trading Act 1987 ss.42, 44;
Trade Practices Act 1974 ss.52, 53
Real estate agents
When advertising, a real estate agent must
show their name and the address of their
office.
Checklist
• name of licence holder (or corporation
if a corporation is the agent; or registered
business name or name of partnership)
• a licensee’s interest as a principal must be
declared in the advertisement
Reference: Property, Stock & Business Agents
Act 2002, s50
Travel agents
If a travel agent is authorised to carry on
business other than under the name of the
licensee, then the name of the licensee must
be followed by the words ‘trading as’.When
advertising, a travel agent must show the
licence number and name of the holder.
If their trading name is registered under
the Business Names Act 1962, then that name
must appear.
Checklist
• name of licence holder (or registered
business name)
• licence number
Reference: Travel Agents Act 1986 s.34
Where to get more information
Fair Trading Centres
Tel. 13 32 20
TTY Tel. 9338 4943
Telephone service for hearing impaired.
Language Assistance Tel. 13 14 50
Ask for an interpreter in your language
www.fairtrading.nsw.gov.au
This fact sheet must not be relied on as legal
advice. For more information about this topic,
please refer to the appropriate legislation.
NSW Office of Fair Trading