Aveling Homes ordered to pay penalties of $380,000 for misleading review websites

30 November 2017

The Federal Court has ordered penalties totalling $380,000 against Aveling Homes Pty Ltd (Aveling Homes) for engaging in conduct liable to mislead the public in connection with two online review websites. The company’s Group Sales and Marketing Manager, Mr Sean Quartermaine, was ordered to pay $25,000 for being knowingly concerned in the conduct.

Aveling Homes is a Perth-based home building company which operates and controls the review website www.avelinghomesproductreviews.com.au and until 3 February 2017 also operated and controlled the review website www.firsthomeownerscentreproductreviews.com.au.

The Federal Court found that during periods in 2016, Aveling Homes represented that each of its review websites were independent of Aveling Homes and were affiliated with the website www.productreview.com.au when that was not the case.

“Aveling Homes held back bad reviews from its review website to give a more favourable impression of its services,” ACCC Chairman Rod Sims said. 

“Consumers are increasingly relying on online review sites to assist with their purchasing decisions. They are entitled to expect that review sites are independent and unbiased.”

“Companies publishing customer reviews online must be clear with consumers whether or not they accurately reflect the full range of consumer feedback – the good and the bad,” Mr Sims said.

The Court also found that the overall star rating and reviews on the review websites were more favourable towards Aveling Homes’ products and services than would have been the case if all the reviews received by Aveling  Homes were published.

The features and appearance of the review websites that caused the contravening conduct were designed by Mr Quartermaine.

Aveling Homes undertook to the Court not to engage in similar conduct for a period of three years and agreed to contribute to the ACCC’s costs.

Background

Aveling Homes is a residential building company that has operated in Western Australia since 2009. During the relevant period Aveling Homes operated two home building businesses, Aveling Homes and First Home Owners Centre. Aveling Homes operated an official website and a review website for each business:

www.aveling-homes.com.au

www.firsthomeownerscentre.com.au (this website is no longer in operation)

www.avelinghomesproductreviews.com.au

www.firsthomeownerscentreproductreviews.com.au

Clarification: This media release was amended on 9 May 2022 to refer to Aveling Homes Pty Ltd as Aveling Homes throughout. This replaced  the previous reference to the company as  Aveling. The change was made after we became aware of confusion with another business called Aveling that was not involved in the conduct.

Release number: 
MR 227/17
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