ELDERLY people in Tamworth's Bupa Aged Care facility have allegedly been denied services paid for as part of their care.
The aged care provider will be taken to the Federal Court by the Australian Competition and Consumer Commission (ACCC) for allegedly making false claims about the services provided.
Bupa has since reimbursed residents for the 'hotel type' services that were not received, but the incident has been labelled elder abuse by Older Persons Advocacy Network chief executive Craig Gear.
"I would say this is a form of elder abuse, it's financial elder abuse," he said.
"If they are being told they are getting a service and they are not, it's actually a breach of consumer law.
"The onus is absolutely on the provider to notify people if they won't provide a service anymore and give clear and transparent statements."
Tamworth Bupa Aged Care is one of more than 20 residential facilities where the ACCC alleges elderly people were not given extras like personal massage or entertainment.
It's alleged the services weren't provided in some cases for more than a decade from December 2007 to June 2018.
Bupa's Aged Care managing director Jan Adams apologised on behalf of the company to residents and families of those affected.
"We have reimbursed all current residents impacted with interest," she said.
"We are committed to addressing this to put things right."
Tamworth residents were not provided with a dedicated children's playground, a mobile fashion service with on-site shopping three times a year and brand name toiletries, according to a statement of claim to be filed by the ACCC.
Local residents were also promised aromatherapy and foot spas on request, computer or TV connections in every room, leisure buildings like a workshop or garden shed and a choice of beer, wine or soft drink with a main meal that the ACCC alleges weren't provided.
The watchdog chair Rod Sims said Bupa failed to provide or fully provide the services.
"In some cases the alleged misleading representations related to services that were significant to the quality of life of elderly residents," he said.
"The promised services are likely also what attracted many residents and their families to choose Bupa."
The matter will now go to the Federal Court.