ARTICLE
4 June 2025

ASIC latest enforcement action for misleading website claims

SG
Sophie Grace Pty Ltd

Contributor

Sophie Grace is a leading Australian firm specialising in both compliance and legal services to participants within the financial services and credit industries. We have serviced Australian and international clients across the financial sector for over a decade. From obtaining the required licences to operate your business to the provision of ongoing compliance support, many businesses have benefited from Sophie Grace’s extensive knowledge in the financial and credit space. We take pride in our ability to offer tailored solutions to a broad range of businesses whilst keeping business practicalities and obligations to regulators at the forefront of our minds when delivering services and advice. Our consultancy services can equip you with assistance and clarity in your business endeavours.
Credit licensees cannot make statements that are materially false or misleading, including claims made on a website or marketing material.
Australia Finance and Banking

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.

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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.

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