Website claims and the Fair Trading Act
A redesign usually means new headlines, new service descriptions and new calls to action. Every claim in that copy needs to be one you can support. This guide explains the rule and how it applies to a business website.
Short answer
Section 12A of the Fair Trading Act 1986 says a person must not, in trade, make an unsubstantiated representation. A claim is unsubstantiated if the person making it lacks reasonable grounds for it when it is made. On a website, that covers claims about results, quality, speed, reviews and comparisons. This guide is general information, not legal advice.
The rule in the Act's own words
Section 12A(1) of the Fair Trading Act 1986 states: "A person must not, in trade, make an unsubstantiated representation."1
The section then explains what counts. A representation is unsubstantiated if the person making it does not have reasonable grounds for it, and whether there are reasonable grounds is judged as at the time the representation is made1. In other words, you need the evidence before you publish the claim, not after someone asks for it.
The section does not apply to a representation that a reasonable person would not expect to be substantiated1. That exception covers obvious exaggeration or opinion that nobody would take literally. It is narrower than many people assume, and specific factual claims are unlikely to fall within it.
What counts as a claim on a website
On a business website, claims appear in many places:
- Headlines and taglines. "The fastest plumber in Wellington." "Auckland's most trusted builder."
- Results figures. "Clients see 120% more enquiries." "95% customer satisfaction."
- Experience and scale. "Over 300 projects completed." "12 years in business."
- Comparisons. "Cheaper than the big agencies." "Better than DIY website builders."
- Reviews and testimonials. Quotes presented as coming from real customers.
- Credentials and awards. Memberships, certifications, awards and accreditations.
- Guarantees. "Guaranteed first page on Google." "Results or your money back."
Each of these is a representation made in trade. Each needs reasonable grounds.
Results figures: handle with care
Results figures are common on design and marketing websites, and they carry particular risk. A figure such as "traffic up 140%" may be true for one client over one period, but presented without context it can mislead. Readers may assume it is typical, or that they will see similar results.
Before publishing a results figure, ask:
- Is the figure accurate, and can you show the data behind it?
- Is it typical, or the best case? If it is the best case, does the page say so?
- Over what period was it measured, and compared with what?
- Did other factors contribute, such as advertising or seasonal demand?
- Did the client agree to it being published?
If you cannot answer these confidently, leave the figure out. A clear description of what you did is safer and often more persuasive.
Reviews and testimonials
Reviews influence buying decisions, which is why fake ones are taken seriously. In August 2026 the Commerce Commission announced that The TV Shop would pay a penalty of $1,104,000 for conduct that included misleading customers2. Part of the conduct involved staff writing reviews, and the judge described the conduct as "deliberate and systematic"2. The Commission's statement said: "Kiwis should be able to trust online reviews are genuine and free of manipulation."2
For your own website:
- Only publish reviews and testimonials from real customers, with their permission.
- Do not write reviews yourself, or ask staff, friends or family to post them as if they were customers.
- Do not edit a review in a way that changes its meaning.
- Do not select only positive reviews in a way that gives a misleading overall picture.
- If you offered an incentive for a review, consider saying so.
If you display reviews from a third-party platform, show them as they appear there.
Illustrative examples and mock-ups
Designers often show example work. If an example is a concept for a fictional business rather than real client work, label it clearly so nobody mistakes it for a case study. On our own site, every before-and-after drawing is labelled "Illustrative concept, fictional business", and none comes with results figures. See our concepts page for an example.
Guarantees about search rankings
Promises such as "guaranteed first page on Google" deserve particular caution. Search rankings depend on many factors outside any designer's control, and Google itself tells site owners to expect temporary fluctuation in rankings during a site move3. It is hard to see what reasonable grounds could support a guarantee of a particular ranking.
Practical checks before publishing new copy
When your redesign brings new website copy, run each claim through these checks:
- Is it a factual claim? If a reasonable reader would take it as fact, it needs grounds.
- What is the evidence? Write down where the evidence is. If you cannot point to it, change the claim.
- Is it current? A claim that was true years ago may not be true now.
- Is it the whole picture? A selective truth can still mislead.
- Would you be comfortable showing the evidence to a customer? If not, reconsider.
| Risky claim | Why it is risky | Safer alternative |
|---|---|---|
| Guaranteed more enquiries | Depends on factors outside your control | We remove obstacles that stop visitors getting in touch |
| Auckland's best builder | Hard to substantiate as a fact | Residential builds across Auckland since 2015 (if true and checkable) |
| 95% client satisfaction | Needs a robust survey to support it | Describe the process, or quote genuine reviews with permission |
| First page on Google | Rankings are outside your control | We plan redirects to lower the risk of losing search traffic |
Other parts of the Act
Section 12A sits alongside other provisions of the Fair Trading Act that deal with misleading and deceptive conduct and false representations. Unfair contract terms in standard form contracts are also covered by the Act, and the Commerce Commission enforces those provisions4. Our guide to web design contracts covers the contract side.
Getting advice
This guide is general information for New Zealand businesses, not legal advice. If you are unsure whether a claim is safe, or you have received a complaint, talk to a lawyer. The Commerce Commission also publishes guidance for businesses on its website.
Questions about website claims
Does section 12A apply to small businesses?
Yes. It applies to any person making representations in trade, regardless of business size.
Can I say we are the best at what we do?
Vague praise that no reasonable person would expect to be proven may fall outside section 12A. Specific comparative claims are riskier. If in doubt, describe what you do rather than ranking yourself.
Can I use testimonials from customers who did not give permission?
It is safer not to. Ask customers for permission and keep a record of it. Use their words as they gave them.
Sources
Each source was opened and checked against the sentence it supports on 3 November 2026.
- Fair Trading Act 1986, section 12A: Unsubstantiated representations Legislation
- The TV Shop to pay $1.104m for conduct that included misleading customers Regulator
- Site Moves and Migrations Platform documentation
- Unfair contract terms | Commerce Commission Regulator
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