Misleading advertisements for beachfront land stopped

The Federal Court, Sydney has granted orders restraining Mr Alex Sibir, a Sydney architect, from promoting the sale of interests in land at Peppermint Beach Estate, Bremer Bay, Western Australia.

he Australian Competition and Consumer Commission instituted proceedings against Mr Sibir for false, misleading and deceptive promotion of land sales during July and October 1997 for 'Pre- subdiv. Land Titles'.

The ACCC was concerned that consumers were not being made aware in the promotional material that the land was zoned 'rural' which did not permit subdivision into smaller blocks. The orders prohibit the advertising or promotion of the sale of interests in Peppermint Beach unless Mr Sibir is able to produce written proof that his representations are accurate.

"This is a successful outcome for consumers because while the advertising was running in Sydney, the land was located in Western Australia and consumers could not easily inspect the land or make independent inquiry about claims made about the land before purchasing," ACCC Chairman, Professor Allan Fels, said today.

"This is an example of Court-initiated mediation resulting in the successful resolution of the ACCC concerns. The procedure has struck a strike a fair balance in protecting consumers without imposing the expense and complexity of the Court process on small business."

Professor Fels acknowledged Mr Sibir's co-operative approach towards resolving the ACCC concerns.