False Charity Claims: What Can The Law Do? (2026 Updated)

Most people in New Zealand want to support good causes. Whether it’s donating to disaster relief, sponsoring a community initiative, or buying from a “for-purpose” brand, the trust we put in charities and fundraisers is a big deal.

That’s why false charity claims can feel so frustrating - and why it’s important to know what the law can actually do when someone misleads the public about where money is going.

This guide is updated for current enforcement expectations and modern fundraising channels (including online ads, influencers and social media), so you can understand your options if you’ve been affected, and your obligations if you’re running a genuine cause-driven campaign.

What Are False Charity Claims (And Why Do They Matter)?

A “false charity claim” generally means any statement (or impression) that misleads people into thinking:

• a person or business is a charity (or officially linked to a charity) when it isn’t;
• a fundraiser is authorised by a legitimate charity when it isn’t;
• donations will go to a particular cause or organisation when they won’t;
• a certain percentage of sales will be donated when that isn’t true (or the terms are unclear); or
• you’ll receive a tax receipt or donation benefit when you won’t.

False charity claims can happen in lots of ways. Sometimes it’s an outright scam. Other times it’s a real business trying to do “cause marketing” but advertising it carelessly (for example, saying “all proceeds” when it’s actually “$1 per sale”).

Either way, the impact can be serious:

• Donors lose money and trust.
• Real charities can lose donations and suffer reputational damage.
• Genuine businesses doing the right thing can get dragged into confusion and complaints.

So what can you do about it? The next step is usually figuring out which laws apply to the conduct.

Which NZ Laws Can Apply To False Charity Claims?

In New Zealand, false charity claims can be dealt with under a few different legal “routes”, depending on what happened and who is involved.

Fair Trading Act 1986 (Misleading And Deceptive Conduct)

The Fair Trading Act 1986 is one of the most important laws here, because it broadly prohibits misleading or deceptive conduct in trade, and false or misleading representations.

If a business is promoting products or services and claims it supports a charity (or implies it), that claim needs to be accurate and not misleading in overall impression.

Common risk areas include:

• vague statements like “supporting NZ charities” with no detail;
• misleading “donation” wording where the donation is conditional or capped;
• suggesting an endorsement or partnership that doesn’t exist;
• using charity logos or brand elements without permission.

If you’re running a campaign like this, it’s smart to tighten up your marketing language and put proper written terms in place early. This is often where strong Business Terms (and a clear promo mechanic) can do a lot of heavy lifting.

Crimes Act 1961 (Fraud And Dishonesty Offences)

If the conduct is genuinely dishonest - for example, someone sets up a fake donation page, lies about a charitable cause, and pockets the funds - criminal law may apply.

Fraud-related offending is fact-specific, and it’s handled by Police and prosecutors rather than “private” enforcement by individuals. But it’s important to know this: some false charity behaviour is more than a consumer issue - it can cross into criminal territory.

Charities Act And Charities Register Issues

If someone is claiming to be a registered charity when they’re not, or misusing charitable registration status, there may be regulatory consequences.

Charities Services (which administers the Charities Register) can take steps in relation to registration and compliance. They’re also a useful reporting channel where the issue involves an entity pretending to be a charity or misrepresenting registration details.

Contract And Consumer Law Issues (When People “Bought” Something)

Sometimes fundraising is tied to a sale - e.g. “buy this product and we’ll donate 10%”. If customers made purchases based on a misleading charity claim, there may also be contractual remedies or consumer law issues depending on the transaction and what was promised.

Where a customer has been misled into buying something, a remedy might involve refunds, cancellations, or disputes about what was represented at the time of purchase.

Privacy Act 2020 (If Donor Data Is Misused)

False charity campaigns often collect personal information - names, emails, phone numbers, addresses, payment details, and sometimes sensitive context (like medical fundraising stories).

If donor data is collected or used improperly, that can trigger obligations under the Privacy Act 2020. Even legitimate campaigns need to handle donor information carefully and transparently, and that’s where having a properly drafted Privacy Policy and collection practices matters.

What Can You Do If You Suspect A False Charity Claim?

If you think you’ve donated to (or purchased from) a false charity campaign, you don’t need to figure everything out on your own. But it helps to move quickly and methodically.

1) Save Evidence Early

Before posts disappear or websites get taken down, capture what you can. Useful evidence includes:

• screenshots of the charity claim (ads, posts, landing pages, emails);
• the fundraiser name, website URL, and any associated social handles;
• payment confirmations and bank statements;
• messages between you and the fundraiser/brand;
• any “terms” shown at the time (including fine print).

This evidence matters whether you’re complaining to a platform, requesting a refund, or reporting it to an agency.

2) Ask Direct Questions (And Request Clarification In Writing)

If it looks like a legitimate business but the charity messaging feels off, you can ask for clarity first. For example:

• Which charity is receiving the donation?
• Is the charity aware of and authorising the campaign?
• How much is being donated (percentage, fixed amount, or profits) and is there a cap?
• When will the donation be paid?

If they refuse to answer, change their story, or provide vague responses, that can be a red flag.

3) Contact Your Bank Or Payment Provider

If you paid by card or via a third-party provider, you may have options (for example, chargeback processes) depending on the circumstances. This is practical rather than “legal”, but it’s often one of the fastest ways to limit loss.

4) Report To The Right Place

There isn’t one single agency for every false charity scenario, so reporting depends on what’s happened.

• Commerce Commission: where the issue involves misleading claims by a business “in trade” (for example, donation-based marketing that’s not true).
• Charities Services: where the issue is about charitable registration, misuse of “registered charity” status, or suspicious charity representations.
• Police: where you believe the conduct is fraudulent or involves dishonesty and theft.
• The platform: if it’s happening on Facebook/Instagram/TikTok/Givealittle-like channels, reporting to the platform can get content taken down quickly.

Even if agencies can’t take action immediately, reporting helps build a pattern - and that can be important for enforcement.

5) Consider Legal Advice (Especially For Businesses And Real Charities)

If you’re a legitimate charity, or a business whose brand has been used to imply endorsement, tailored legal advice is worth it. The right strategy might include:

• a formal cease and desist letter;
• contacting platforms with a stronger evidentiary case;
• assessing trade mark/copyright angles if logos or brand assets were copied;
• considering defamation or reputational risk management (carefully).

It’s often tempting to “call it out” publicly straight away, but that can create its own legal risks. A quick legal check can help you respond firmly without escalating things unnecessarily.

What Can Regulators And Courts Actually Do?

When people ask “what can the law do?”, they’re usually asking whether anything meaningful can happen beyond a complaint email.

The answer is yes - but outcomes depend on evidence, severity, and whether the conduct fits within a regulator’s scope.

Commerce Commission Outcomes (Fair Trading Act Enforcement)

If the Commerce Commission investigates and takes action, outcomes can include:

• Warnings or compliance advice (more common for smaller, first-time issues);
• Enforceable undertakings (a formal commitment by a business to change behaviour);
• Court proceedings for breaches of the Fair Trading Act;
• Penalties (which can be significant, depending on the breach and entity type);
• Corrective advertising or public statements in some cases.

Regulators generally focus on conduct that affects lots of people, involves clear deception, or reflects a broader compliance issue.

Criminal Consequences (For Serious Fraud)

Where criminal fraud is involved, consequences can include charges, prosecution, and penalties imposed by the criminal courts.

Practically, criminal investigations can take time. But if the conduct is an outright scam, reporting early still matters - particularly if multiple people have been affected.

Civil Claims (Refunds, Damages, Injunctions)

In some cases, affected people or organisations may pursue civil remedies. Depending on the facts, this may include:

• refunds or repayment demands;
• claims for loss caused by misleading conduct;
• injunctions to stop ongoing misleading fundraising;
• orders around use of branding or content (where IP is infringed).

Civil action is not always cost-effective for small donation amounts, but it can be very relevant where a charity’s name is being misused at scale, or where a business’s “cause marketing” is materially misleading and financially significant.

Platform Takedowns And Reputational Impact

Sometimes the fastest “remedy” is a platform takedown and stopping the campaign, even before regulators get involved.

Platforms don’t replace legal enforcement, but they can be effective when:

• there is a clear impersonation of a charity;
• brand assets are copied;
• the campaign breaches platform fundraising rules; or
• there are user reports supported by screenshots and transaction evidence.

How Can Genuine Businesses Avoid Accidentally Making A False Charity Claim?

Not every issue starts as a scam. Plenty of genuine businesses want to support a cause, and they mean well - but their marketing doesn’t match the reality.

If you’re a business owner running a donation promotion, your goal is simple: make your charity claims clear, accurate, and provable.

Be Specific About The Donation Mechanics

Avoid broad statements like “all proceeds go to charity” unless you can back it up. Instead, state clearly:

• the exact charity name (and ideally the registered entity name);
• the exact donation amount (e.g. $2 per sale) or percentage (e.g. 10% of revenue);
• any caps (e.g. “up to $10,000”);
• the timeframe (e.g. “for sales made between X and Y”);
• when payment will be made to the charity.

If you’re running a campaign that involves a giveaway or incentive, you’ll also want to make sure your promo rules are tight - especially where “donation to enter” language is used. For some businesses, having proper Competition Terms & Conditions can help prevent misunderstandings and complaints.

Get Permission To Use The Charity’s Name And Branding

Even when you genuinely intend to donate, you shouldn’t assume you can use a charity’s logo, brand colours, or name in a way that implies formal endorsement.

A simple written agreement (or at least written approval) can help you avoid:

• brand misuse allegations;
• confusion about whether the charity endorsed your product;
• disputes about how fundraising is presented publicly.

Make Sure Staff And Contractors Follow The Same Story

If you’ve got staff, influencers, or contractors promoting the campaign, the message needs to be consistent.

This is where having clear written expectations and contractual controls can help - for example, a marketing contractor agreement or influencer agreement that requires accurate statements and compliance with your campaign terms. If you’re engaging people to promote or fundraise on your behalf, it’s worth tightening the relationship with a tailored Service Agreement.

Don’t Collect More Donor Data Than You Need

Collect only what you need to run the campaign, store it securely, and be transparent about what you’re doing with it.

If your campaign collects emails for updates or marketing, be careful about consent. If it’s an online checkout, ensure your privacy settings and disclosures match what you’re actually doing.

Document The Donation (So You Can Prove It Later)

If someone challenges your campaign, being able to show proof of donation is key. Keep:

• bank transfer records or receipts to the charity;
• written confirmation from the charity of funds received (where possible);
• internal reports matching sales volumes to donation amounts.

This isn’t just good compliance - it’s also good brand protection.

Key Takeaways

• False charity claims include any misleading statements or impressions about charitable status, authorisation, or where donations will go.
• The Fair Trading Act 1986 is often the main law for misleading charity-linked marketing by businesses “in trade”, while serious scams may involve criminal fraud issues.
• If you suspect a false charity claim, save evidence early (screenshots, URLs, payment records) before content is deleted or changed.
• Reporting options can include the Commerce Commission, Charities Services, Police, and the platform hosting the fundraiser, depending on the facts.
• Regulators and courts can take meaningful action, including penalties, enforceable undertakings, injunctions, and (in serious cases) criminal prosecution.
• If you’re running a genuine cause marketing campaign, keep claims specific and provable, get permission to use charity branding, and use clear written terms to avoid misunderstandings.

If you’d like help responding to a misleading fundraising campaign, or you want to make sure your own charity-linked promotion is set up properly from day one, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.