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ARTICLE · 04 JUNE 2025

ASIC latest enforcement action for misleading website claims

Sophie Grace Pty Ltd
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Credit licensees cannot make statements that are materially false or misleading, including claims made on a website or marketing material.

AustraliaFinance and Banking
Joy Xu
Joy Xu
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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.

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