Misinformation is decried in today’s discourse. Governments have been tempted to attempt to restrict or outlaw it. This may not be possible where there are Constitutional protections for free speech. However, many countries lack rigorous protections. Australia shows us an approach where there are limited protections. It is a cautionary tale, exacerbating ‘agency conflicts’ both at the political and regulatory level and at the corporate level. The Australian government has attempted to curtail ‘misinformation’ and ‘disinformation’ through the proposed ‘Communications Legislation Amendment (Combatting Misinformation and Disinformation) Bill 2023’. But, in so doing, the proposed bill casts a wide net, has unintended consequences, and unnecessarily chills free speech and intellectual inquiry. Ironically, the Bill also exempts the government’s own communications from attempts to curtail misinformation. The Bill would also incentivize corporate overreach by penalizing firms for inadvertently allowing ‘misinformation’, but not penalizing them for suppressing true information. The corporate governance literature gives additional insights into the value destruction that such a Bill could cause. The Bill’s failures provide lessons for any government that seeks to legislate against misinformation.