Credit licensees should consider the material included on their websites. ASIC has fined Chapter Two Holdings Pty Ltd, a debt management company for alleged misleading claims included on its website.
The ASIC Act and ASIC's Regulatory Guide 234 prevent credit licensees from making statements that are materially false or misleading. This includes claims made on a licensee's website or marketing material.
From 1 August 2023, Chapter Two Holding's website claimed it had wiped $80 million in debt and saved customers $30 million in interest – figures ASIC considered were false or misleading. Chapter Two Holdings could not justify these claims or provide a reasonable basis for them and were issued fines in totalling $37,560.
ASIC's guidance on advertising
Debt management and debt collection misconduct is an enforcement priority for ASIC in 2025. It is important these credit licensees have an understanding of ASIC's expectations when it comes to promoting their services.
Regulatory Guide 234 outlines best practices for promoting financial products and services in a way that avoids misleading or deceptive conduct. Core principles include tailoring messages to the target audience, presenting information in a balanced manner, clearly highlighting any risks, offering a realistic view of fees, clarifying the limitations of performance data, and ensuring visual content is accurate and not misleading.
Firms referencing performance data in marketing material should carefully consider ASIC's guidance.
Key Takeaways
Debt management firms and all other types of credit licensees can do the following to help to ensure marketing material does not include false or misleading statements:
- Review ASIC's guidance in Regulatory Guide 234 and consider whether current marketing material and website content should be updated or amended;
- Consider any testimonials included on your website – are they authentic and attributed to a real source?
- If you include performance data or other metrics in your marketing materials, ensure you are able to substantiate this data and that any qualifying statements are clearly included to give consumers a realistic impression of what your service is able to achieve.
Other Resources
Sophie Grace Marketing Checklist
RG 234 – Advertising Financial Products And Services (Including Credit): Good Practice Guidance
ASIC Enforcement Priorities 2025
Marketing Guidelines for Financial Services and Credit Providers
Why Referencing the Regulator in Marketing Material is Risky Business
Use Of Performance Figures In Marketing Materials – ASIC Takes Action
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
