Puffery in advertising: how to avoid misleading claims and stay compliant

In advertising, the words you choose can shape how people see your brand. A bold claim might grab attention, but if it crosses the legal line, it can cost you. That’s where puffery comes in. Used well, it adds flair to your message. Used poorly, it can mislead customers and breach consumer law. This guide shows you how to stay sharp, stay clear and stay compliant.[ez-toc]

A quick guide to puffery

Puffery is a type of advertising that uses bold or emotional language to promote a product or service. It includes claims like “best ever” or “world-famous” that most people know are not factual. Puffery is legal when a reasonable person wouldn’t take the claim seriously or rely on it as fact.

What is puffery and why your business needs to understand it

In advertising, words matter. What you say about your product or service can win trust or cause legal trouble. That’s why it's vital to understand puffery—a term that might sound light, but carries serious legal weight if used the wrong way.

What is puffery?

Puffery refers to wildly exaggerated or boastful statements that most people would not take literally. These claims are often vague, emotional or subjective. They are used to make a product or service sound more appealing but are not meant to be factual.A reasonable person would see puffery as just that—exaggeration, not a fact they can rely on.

Examples of puffery

You’ll often see puffery in slogans or advertisements like:

• “The best burgers in Australia”
• “A world-famous cleaning service”
• “Unmatched quality you can count on”
• “Australia’s favourite gym since 2000”

These phrases do not make factual promises. They are too broad to check or prove, and that’s what usually makes them legal.

Why puffery matters in business

If you go too far and make your claims sound factual without proof, your business can face legal trouble. A false or misleading statement—even if it sounds like puffery—may still be considered misleading under Australian Consumer Law if a reasonable person would interpret it as factual or rely on it when making a decision. You could face action in Federal Court, a financial penalty or a costly contract dispute.The difference between puffery and misrepresentation often comes down to evidence and context. Can the claim be proven? Would a consumer take it seriously?

How puffery differs from a misleading or deceptive statement

It’s easy to blur the line between puffery and a misleading or deceptive statement. But the law treats them very differently. To stay compliant, your business must know how to tell them apart.

Puffery vs misleading conduct

Puffery is an exaggeration that no reasonable person would take as fact. A misleading statement is a claim that sounds factual, but isn’t true or can’t be proven. The difference between puffery and misrepresentation often comes down to how the average consumer would see it.Here’s a quick comparison:TypeWhat it meansExampleLegal riskPufferyExaggerated, vague, or emotional language“Tastiest burger in town”Usually noneMisleading or deceptiveFalse, vague or unproven factual claim that misleads consumers“Clinically proven to cure headaches” (with no proof)High – may lead to court action

How the law sees it

Under Australian Consumer Law, a company’s statement can still mislead consumers even if it wasn’t meant to. The court will consider:

• What the advertisement actually says.
• How a reasonable consumer would understand it.
• Whether the claim can be proven or is just vague puffery.
• If the statement was made in the course of trade or commerce.

You must take care not to exaggerate claims that consumers may rely on. If you use terms like “proven”, “guaranteed” or “certified”, make sure you have valid proof.

When a product claim could get you in legal trouble

A product claim is any statement that suggests a product or service has a certain benefit, feature or effect. Unlike puffery, a claim must be accurate, truthful and supported by valid proof. If not, it may mislead consumers and breach Australian Consumer Law.

What qualifies as a claim?

A claim is a representation about a product or service that a reasonable person would expect to be true. These include:

• Health benefits (e.g. “Reduces back pain in 7 days”).
• Performance guarantees (e.g. “Lasts 5x longer than competitors”).
• Money-back guarantees (e.g. “100% refund if not satisfied”).
• Environmental claims (e.g. “100% biodegradable packaging”).

When a claim becomes a legal risk

Not all claims are risky. A general or vague statement like “best in the market” is usually mere puffery. But if a business makes a factual claim, it must be backed by scientific evidence or reliable data.Compare these examples:Type of statementExampleLegal riskGeneral praise"Amazing cleaning results!"Low – considered pufferyMeasurable promise"Kills 99.9% of bacteria"High – must have proofGuarantee"Lose 5kg in one month or your money back"High – must honour refundIf a business fails to prove a claim, it may face penalties, customer refunds or court action.

How advertising can mislead even when you don’t mean to

Even well-meaning businesses can mislead consumers without trying to. The problem often comes from unclear language, missing details or the wrong format. It’s not always what you say—it’s what people think you’re saying that ultimately determines if your claim is misleading or mere puffery.

Common causes of unintentional misleading

You don’t have to lie to get into legal trouble. Some advertisements are considered misleading because of how they are worded or presented. This includes:

• Vague claims that sound factual but are not clear.
• Leaving out important conditions or limits.
• Putting key info in small print or hard-to-read footnotes.
• Using a design that hides or distracts from facts.
• Offering promotions without explaining when they may apply.

These issues can arise across many commercial formats.

Where it happens

Some types of advertising make it easy to go wrong. The risk increases when there are word limits or fast production. Examples include:

• Social media posts with big claims and no fine print.
• Influencer content without proper disclosure.
• Email campaigns that skip the details.
• Paid ads using bold slogans like “No fees!” without conditions.

A small business might say “No fees!” in a campaign but hide the contract terms in a long disclaimer. That could mislead a consumer. Even though the company didn’t plan to deceive, the result may still breach the law.

The penalty for misleading claims can be serious for any size business

Misleading claims in advertising or sales material are not just risky—they can lead to serious legal and financial problems. Whether you run a large company or a solo business, you can face action under Australian Consumer Law.

What can happen if you mislead consumers

The law treats misleading claims as a major issue. You don’t have to plan to mislead to be in breach. If a reasonable person would see the statement as false or misleading, you may face:

• Civil penalties the greater of $50 million, three times the benefit gained, or 30% of turnover during the breach period.
• Court orders to pay compensation or cancel contracts.
• Criminal charges in extreme cases.
• Loss of reputation and customer trust.
• Investigation by the ACCC or state consumer protection agencies.

These outcomes don’t just apply to big businesses. Smaller operators are often caught out because they lack proper checks or legal advice.

Example enforcement actions

Here are some example enforcement actions across different business sizes:Business sizeCompanyIssueOutcomeSmall businessHealth companyFalsely claimed “cures back pain”Fined $25,000Medium businessCleaning companyMisleading use of “chemical-free”Refunds + public apologyLarge enterpriseEnergy companyHiding fees in small printFined $12 million

Who is responsible

The company’s owner, marketing team and even the advertisement publisher can share liability. This includes in-house staff and contractors.If you sell products or services, take the risk seriously. A single statement can cost more than money—it can damage your brand.

Understanding the role of silence, print and prediction in deceptive advertising

Advertising doesn’t need to include lies to mislead. Sometimes, what you don’t say—or how you present it—can still breach the law. Three areas many businesses miss are silence, print and prediction. Each carries its own risk, especially when combined.

Silence can mislead consumers

Silence becomes a problem when you leave out key information. If a consumer would act differently with access to the full details, your silence may mislead them. For example:

• Not stating that a sale offer only applies to select items.
• Leaving out cancellation terms in a contract.
• Failing to mention insurance fees in a service quote.

Even without false claims, silence can be considered misleading if it hides key facts.

Print can lock in misleading claims

Once you print a flyer, brochure or label, it’s fixed. Errors or missing details can’t be changed or deleted. This makes print a high-risk format. Common print issues include:

• Overstated claims without small print to balance them.
• Outdated info still being handed out months later.
• Poor design hiding terms and conditions.

Predictions must be realistic

A prediction like “Double your revenue in 30 days” sounds exciting but needs strong proof, as specific predictions often go beyond mere puffery. If a consumer relies on this and doesn’t get the result, you may face a breach of Australian Consumer Law. Claims about future results must be:

• Backed by evidence.
• Relevant to the context.
• Clear about conditions.

Example scenario

A small business promotes a product with a glossy flyer. The flyer says “No fees ever” and “Triple your sales in one month” but hides terms in tiny print on the back. The business doesn’t mention extra charges for setup or service limits.This mix of silence, misleading prediction and risky print format could lead to:

• Legal complaints.
• Refund demands.
• A possible court case.

If your advertisement includes predictions or leaves out key facts, don’t hope it’s okay. Check everything before it reaches the consumer to minimise the risk of breaching Australian Consumer Law.

How conduct across all channels affects your brand's legal exposure

The law doesn’t just look at one advertisement in isolation. It looks at your full conduct—how your business acts across all platforms, over time. This includes the words you use, how often you use them and where they appear.If you repeat the same statement or puffery tagline in emails, online ads and your website, it forms a pattern. That pattern shapes how a consumer sees your brand and the claims you make. If the claims are vague, misleading or false, you risk breaching Australian Consumer Law.

What conduct means in advertising

In this context, conduct refers to your overall marketing behaviour. This includes:

• The language you use across all touchpoints.
• How often you repeat the same claim or puffery tagline.
• Whether your statements are backed by facts.
• If you change your message depending on the audience.
• Whether you correct errors or leave them in place.

Example: Michael the Physio

Michael owns a growing physio clinic. He promotes a service that “fixes chronic pain in one session”:

• He puts the claim on his website.
• He repeats it in email newsletters.
• He runs paid social ads with the same message.

Michael doesn’t include disclaimers or factual proof. A consumer relies on the representation, books an appointment and is disappointed. That’s not just one bad advertisement—it’s a risky pattern of conduct.If you are seeking to engage a third party to assist with your marketing campaigns, Business KitzMarketing and Social Media Marketing Contract Agreement Template can help get you started. Business Kitz offers over 100 document and agreement templates to support your business. Sign up for a free account today!

Where the risk builds up

Legal exposure increases across:

• Social media posts.
• Sales emails.
• Website banners.
• Flyers and print ads.
• Online listings or product pages.
• Video and audio content.

Even if one ad seems harmless, the full pattern may mislead consumers.In commerce, one message repeated the wrong way can lead to liability. Protect your brand by keeping your advertising clear and consistent and accurately identify the difference between puffery and a misleading statement. Speak with a legal professional If you are unsure whether you claim is misleading.

Why your advertising strategy must differ based on platform and audience

Not every advertising message fits every channel. What works on Instagram might not suit a printed flyer or billboard. The same claim can seem clear on one platform and vague or misleading on another. Your business needs to adjust its message to suit the context and audience.

Platform changes how people see your claims

Different formats come with different expectations. A consumer browsing Instagram might expect casual or promotional language or puffery. But a person reading a print ad or formal contract may expect precise statements. If the tone, layout or wording isn’t right for the platform, it may mislead.Here’s how platforms differ:PlatformConsumer mindsetLegal risk if misleadingInstagramCasual, visual-firstHigh – limited space for disclaimersWebsiteResearch-drivenMedium – expectations of detailBillboardQuick, broad messageHigh – limited space can oversimplifyEmailDirect and personalMedium – strong claims may be taken literally

Know your audience

Different buyers see the same words in different ways. Let’s look at three types:

• Sarah, the real estate pro, looks for clear benefits and value in property ads. She expects terms in writing and may rely on contract language rather than puffery.
• Michael, the physio, wants to promote health services but must avoid bold promises about results. His patients rely on honest info.
• A national retailer markets products across many states. They must ensure all claims meet legal standards in every region of Australia and clearly identify the difference between puffery and misleading statements before implementing bold advertisements.

Each group needs a tailored approach to advertising. Using one slogan across all platforms may backfire if it’s considered misleading by a different group.Adapt your advertising to suit the platform, the reader and the medium. The right words in the wrong place can still mislead.

How to align your business advertising with the law

Staying compliant with Australian Consumer Law doesn't mean giving up strong advertising. It means knowing where the line is and how to stay on the right side of it. Follow a clear process to avoid risk and build trust with your audience.

A simple checklist for legal advertising

Use this checklist to review your advertising process and spot legal risks before they grow:

• Audit all claimsGo through your current and planned advertisements. Look for any statement that sounds like a promise or factual claim. Review both current ads and drafts waiting to go live.
• Distinguish puffery from factual claimsPuffery is okay when it's an obvious exaggeration. If a reasonable person might rely on it as a fact, it's no longer mere puffery. Review wording like “guaranteed”, “proven” carefully.
• Disclose key info clearlyDon’t rely on fine print or hidden links. Always include limits, fees or other terms in a way the average consumer can see and understand.
• Get legal sign-off and store recordsMake sure someone reviews each ad before it goes live. Save all approved versions in case a complaint arises. This can help in court or when responding to regulators.
• Train your team on ACL basicsMake sure your marketing, sales and design teams know what counts as a breach of consumer law. Use plain examples and simple rules.

If you are unsure whether a claim you plan to advertise is puffery or misleading, seek professional advice before using the claim in your marketing.To securely store your documents, utilise Business Kitz. Business Kitz offers secure storage with our Document vault, secure e-signing, over 100 document templates and many more features to support your business. Get started today!

Frequently asked questions about puffery

What is mere puffery?

Mere puffery is a type of advertising that uses big, vague claims that most people would not take seriously. These include phrases like “the best in the world” or “unmatched quality”. They are not meant to be taken as facts. The law often treats these statements differently from real claims that can mislead people.

What counts as a false or misleading claim?

A false or misleading claim is any statement that a person might rely on as fact but turns out to be untrue or not backed by proof. If the claim could change a person’s decision to buy, use or trust a product or service, it may break the law.

How can I tell the difference between puffery and a legal claim?

Start by asking if a reasonable person would take the statement as a real promise. If the claim can be tested or proven, it is not puffery. You should also check if the wording sounds like legal jargon or if it might paint the product as better than it truly is.

Can silence in advertising get my business into trouble?

Yes. If you leave out key details that would change a person’s choice, that can mislead. You must inform your audience of limits, costs or terms. Silence can be risky, especially when combined with strong claims.

Where should I display disclaimers?

You should display important disclaimers where people can easily see them—on websites, labels, signs or any ad. Hiding them in small print or links can lead to legal trouble.

What if my claim depends on the circumstance?

If a claim only applies in a certain circumstance, say so clearly. Words like “from”, “may” or “up to” can help, but don’t rely on them alone. Always explain limits and conditions up front.

Do small businesses have the same rules?

Yes. The law doesn’t change based on size. Whether you run a one-person shop or a national brand, the rules apply. You must take your conduct in the market seriously and stay within legal limits.

Can I use puffery alongside real facts?

Yes, but be careful. You can use ‘puffery’ in your branding or slogans, but when you include real data or stats, you need to be sure they are correct. Don’t let the mix confuse your audience.

Why should I treat advertising claims seriously?

Because the risks are real. A misleading claim can lead to complaints, fines or even court action. It can damage trust and harm your brand. You should treat seriously every word you publish.

Market smart and stay protected

Puffery can help your advertising stand out, but only when you use it with care. The line between exaggeration and deception can be hard to see. Still, the law takes it seriously—and so should your business.A single statement can mislead consumers, trigger a breach or land you in court. Even small brands and solo operators face risk. That’s why it’s vital to check every claim, match your message to the platform and keep a clear record.You don’t need to do it all alone. Business Kitz can assist your business to securely store and manage your advertising and marketing documentation. View our range of features for simplified business and document management. Sign up for free today!Disclaimer: This content is intended to be used for educational and informational purposes only. Business Kitz does not offer legal advice and cannot guarantee the accuracy, reliability, or suitability of its website content for a particular purpose. We encourage you to seek professional advice from a licensed professional and verify statements before relying on them. We are not responsible for any legal actions or decisions made based on the information provided on our website.Unless expressly stated otherwise, all content, materials, text, images, videos and other media on this website and its contents are the property of their respective copyright owners.