Residents in Melbourne's west have accused the United Australia Party of "targeting" children, the elderly, and non-English speaking community members in a free hat handout ahead of the federal election.
But United Australia Party leader Craig Kelly has rejected the allegations and said he has only encouraged candidates and volunteers to be "entrepreneurial".
Maribyrnong City Councillor Michael Clarke said yellow hats with the United Australia Party logo on the front, and the word "FREEDOM" on the back, were handed out to Yarraville Festival attendees at the weekend.
But he told ABC Radio Melbourne party representatives seemed to be approaching children, and did not appear to be explaining their policies to those taking hats.
"No-one's got a problem with any political party carrying a political agenda," he said.
"They go out and give out these hats to kids … and there are people from a non-English-speaking background who don't really know what the messaging is.
"It's … deception by omission."
Mr Clarke also said Victorian Labor and the Victorian Socialists had stalls at the festival, and the Victorian Socialists were asked to remove "offensive paraphernalia".
Stella from West Sunshine told ABC Radio Melbourne she was working at Yarraville Festival.
She said her dad received a hat at the Yarraville Festival and when she asked him what it represented, he could not tell her.
"My father still has this hat, and I asked him this morning, do you know what that hat is about?"
"He said no — his English is limited, they don't understand."
Julie from Yarraville said her 11-year-old child was given a United Australia Party hat at the festival without her consent.
"I object to her being used for political promotion," she said.
Amy from West Footscray said she also saw United Australia Party representatives approaching children at the Yarraville Festival.
"They approached a group of young children who were maybe five to seven, who were playing nearby their parents," she said.
Rachel from Footscray said she attended Laverton Market two weeks ago and saw "a sea of people" wearing United Australia Party hats, "from toddlers to the elderly".
Craig Kelly rejects allegations
But United Australia Party leader Craig Kelly told Virginia Trioli on ABC Radio Melbourne he "strongly rejects those allegations that were made".
"How can you walk up to someone knowing they are a non-English speaking person?" he said.
He said the Melbourne United Australia Party candidates he spoke to told him they only approached parents at local events.
He said handing out hats was a "great initiative".
"We should be entrepreneurial — go out there, promote the party," he said.
"I think our candidates there in Melbourne, you had a hot day … I thought it was a great initiative of them."
Electoral laws 'do not appear to be a concern in this instance'
An Australian Electoral Commission spokesperson said electoral laws "do not limit the placement of political signage or the conduct of campaigning activities with the exception of proximity to a voting venue during the election".
"Electoral laws do require campaigning materials to be appropriately authorised so people know who is communicating with them but this does not appear to be a concern in this instance," the spokesperson said.
"With regard to the appropriateness of campaigning at a local festival or market, there may be restrictions in place that are the authority of the relevant local council … [or] event organisers themselves."
It is understood the rules for Yarraville Festival and Laverton Market are determined and enforced by their respective managements, and not by local council.
While the Yarraville Festival Committee declined to comment, Mr Clarke said he understood the United Australia Party candidate for Gellibrand, Abraham Isac, informed the festival organisers he would be attending.
Mr Isac confirmed he was at Yarraville Festival and Laverton Market but did not respond to questions about the handing out of hats and whether specific individuals were targeted.
Laverton Market has not responded to a request for comment.
'In-your-face' campaigning
Australia National University political marketing expert Andrew Hughes said the United Australia Party wanted lots of people to wear the hats so it looked like they were "appealing to a wide section of the community".
"They'll use plausible deniability [as a defence] — they will say 'we gave it out, and they took it'.
"But they're tapping into that community feel, and trying to give people a sense they're part of a larger movement."
Dr Hughes said most political parties did not use this kind of advertising because it was proven not to be as effective as getting consent.
"It's an in-your-face way of campaigning," he said.
"Permission marketing is more effective because you've said yes, compared with not getting your permission."
While historic campaigns have included the handing out of merchandise, including "Kevin '07" T-shirts, and Donald Trump "Make America Great Again" caps, Dr Hughes said the United Australia Party was different because it was a "fringe party".
"A majority of people will vote for someone other than [United Australia Party chairman] Clive Palmer," he said.
But he said research showed this technique was unlikely to influence people at the ballot box.
"At the end of the day, we have to connect with policy," Dr Hughes said.
The United Australia Party was also criticised last year for spamming phones with unsolicited political advertising.