All-inclusive holidays: ACCC sounds alarm on dodgy tactics by NDIS providers

A damning report into the $50 billion National Disability Insurance Scheme has sounded the alarm on dodgy tactics by providers, including bogus claims of tax payer-funded overseas holidays.

A taskforce comprising the Australian Competition and Consumer Commission and the two main regulators overseeing the scheme — the National Disability Insurance Agency and NDIS Quality and Safeguards Commission — found the 751,000 Australians on the NDIS were at risk of exploitation by providers that breach consumer laws.

The ACCC on Tuesday said providers were wrongly charging for essential disability support products that were not supplied as agreed, or falsely claiming services or products were “NDIS-approved or eligible for NDIS funding”.

“Whilst these practices are not universal, the scale and types of complaints we’re hearing about is concerning,” the regulator said.

“ACCC data indicates NDIS participants are frequent targets of scam activity, including impersonating government agencies and romance scams.”

Some of the dodgy tactics the ACCC singled out in its 40-page report were false and misleading advertising, unclear contracts with unfair terms, providers charging for products or services that were not supplied, misleading claims about accommodation, as well as scams.

“Harm can range from financial loss and life-limiting impacts, to compromising the safety and physical wellbeing of NDIS participants,” ACCC deputy chair Catriona Lowe said.

“Such conduct is completely unacceptable and the ACCC will continue to work with taskforce agencies to protect NDIS participants, educate and hold providers that continue to do the wrong thing accountable.”

The report said many provider contracts included unfair terms like excessive exit or cancellation fees, or unreasonably long periods for cancellation.

Others charged for services that were never provided or charged for more support hours than they delivered.

The ACCC also raised concerns about providers claiming products and services — like all-inclusive holidays — were guaranteed to be funded, “when the NDIS doesn’t fund general costs associated with holidays” like flights, passports, cruises, activities, dining out, and shopping.

Some providers were also saying services were NDIS approved when they were not, the ACCC said.

Last May, the ACCC slapped WA bedding and mattress retailer Bedshed with a $40,000 fine for allegedly claiming some its products have been approved by the NDIS.

A week later, the company behind all-in-one blender Thermomix was fined nearly $80,000 for making similar claims.