ss. 52, 53(e), 53A. Alleged misleading and deceptive conduct
2 December 2004: ACCC accepted administrative undertakings from Ray White (Real Estate) Pty Ltd and one of its agencies following allegations of misleading and deceptive advertising.
Ray White (Real Estate) Pty Ltd is the master franchisor of the Ray White network in Queensland.
Following a complaint about the advertising and auction of three properties in Brisbane's northern suburbs in late 2003, the ACCC expressed concern that the properties were promoted using indicative prices significantly below the prices at which they were passed at auction.
Ray White Pty Ltd and its agent acknowledged that the actions may have raised implications under the misleading or deceptive conduct provisions of the Act and offered administrative undertakings to address the ACCC’s concerns and to ensure future property advertising by the entire Queensland Ray White network comply with the Act.
As part of its administrative undertakings, Ray White Pty Ltd and its agent have agreed to:
refrain from engaging in the conduct in question, including ‘indicative pricing’ or ‘bait pricing’ when advertising properties in the future
bring to all Queensland Ray White franchisees’ attention the details of the conduct in question and the concerns of the ACCC
conduct regular trade practices compliance training sessions for Ray White's office principals and sales people to update Ray White’s materials, content and methodology pertaining to ‘indicative pricing’, in particular ss. 52, 53(e) and 53A and to convene a specifically designed training program
amend manuals to include specific references to the relevant sections of the Act
issue a formal policy that all of its offices must comply with the specific provisions of the Act as they relate to ‘indicative pricing’.
