From the Commissioner: How reliable is AI when it comes to consumer law?

Last updated: 17 April 2026

It’s not uncommon for people to use AI when they jump online to search for various things these days and while it can be an effective tool in some situations, people do need to be careful when it comes to rules and regulations.  

Consumer Protection has been dealing with a few queries recently where consumers have based their complaints on AI, only for AI to give them wrong information about how the Australian Consumer Law (ACL) and other laws apply to their situation.  

One example involved a consumer dropping their mobile phone off a boat into the ocean. They managed to collect it, but the phone was badly damaged. AI told them they had the right to a replacement. Similarly, another consumer’s child threw their iPad onto the floor and broke the screen and camera. AI advised them they were entitled to a repair. 

In both these cases the consumers asked our team to look into the matter. We found there was no breach of the ACL as the damage was caused by misuse, not a manufacturing fault.  

Another case involved a complaint about issues in a Residential Park that related to the sale of a park home. The consumer cited multiple Supreme Court decisions across Australia that allegedly supported their position that they were entitled to a refund of the purchase price. 

Our review found the Supreme Court decisions existed in some cases but had no relevance to consumer goods or residential parks but about issues including health insurance, superannuation and an appeal of a murder conviction. In other instances, we found the cases did not exist and had been created by AI.

While it’s always encouraging that people do their own research before contacting Consumer Protection, we would urge you to not rely on AI alone as the answers produced will often be a mix of truth and fiction. 

The bottom line for WA consumers is simple: don’t assume AI is correct. That information should always be checked against trusted sources to verify claims before you take any action.

Before submitting a complaint to a business or a business owner, or lodging a complaint with us, we encourage you to contact us or check the Consumer Protection website – it’s free, accurate and designed to help Western Australian consumers make decisions that work for them, not someone selling a product or service.

If you need advice about your situation, contact Consumer Protection on 1300 30 40 54 or visit consumerprotection.wa.gov.au