Introduction There is increasing evidence that acupuncture is an effective therapeutic technique for some patients with painful conditions; but, there is ongoing controversy as to whether this effect is primarily due to mechanical or direct effects of acupuncture (verum) or non-specific factors, including placebo (sham). This paper explores some of the issues involved in differentiating these, including the difficulty in designing a true sham acupuncture technique for investigative purposes; the range of techniques employed in acupuncture; how points to be treated are selected; and the role of placebo in acupuncture delivery. Conclusion It is likely that placebo effects contribute to, or enhance, the therapeutic effects of acupuncture; but, the exact mechanism by which verum acupuncture works has yet to be fully elucidated.