ss. 52, 53(e), 53A. Misleading or deceptive conduct, false or misleading representations
5 December 2003: Proceedings were instituted in the Federal Court, Melbourne, alleging real estate underquoting in the advertisements for the sale of a property at 341 Glen Eira, Caulfield, Victoria. The property was passed in at auction on 14 September 2003 for $781 000.
The ACCC alleged that Gary Peer and Associates had advertised the property in August and September 2003 in various media at ‘price guide $600 000 plus buyers should inspect’ and later at ‘price guide $650 000 plus buyers should inspect’ which falsely represented the price.
9–10 March 2005: Trail was held over this two day period; currently awaiting judgment.
13 April 2005: Justice Sundberg found that Gary Peer & Associates Pty Ltd had engaged in misleading conduct in the way it advertised a property at 341 Glen Eira Road, Caulfield, Victoria in 2003.
The court found that the representations falsely represented the price at which:
the vendors of the property were prepared to sell
the vendors of the property had instructed the respondent to sell
the real estate agent believed that the property was likely to sell.
The court also found that Gary Peer & Associates Pty Ltd did not have reasonable grounds to make the representations.
Justice Sundberg stated it was appropriate in this case to make declarations to mark the court’s disapproval of the real estate agency’s conduct. He noted that ‘the subject matter of the case is of considerable public interest, involving as it does advertisements for the sale of real property that affect many members of the public’.
The court ordered the company to pay the ACCC’s costs.
