This article is from the Australian Property Journal archive
THE Queensland Office of Fair Trading has fined real estate agency Purplebricks for allegedly breaches of the Australian Consumer Law and the Property Occupations Act 2014.
Purplebricks has entered into enforceable undertakings, which will remain in force for three years and will pay a penalty of $20,000 and ensure that all representations made by the business, particularly those concerning fees and additional services, are not false or misleading.
The OFT alleges that between November 2016 and June 2017, Purplebricks entered into agreements with consumers who were not made aware of the terms of the fees charged.
The OFT received several complaints from consumers alleging false and misleading representations on the Purplebricks website and advertising regarding their fees, particularly that the fixed fees were payable regardless of whether a property was sold, or their services were cancelled.
The OFT said consumers were also misled about additional services offered by Purplebricks, despite the agency advertising ‘low, fixed fees’ for their services when selling property.
Also during this period, Purplebricks failed to fulfil some of its regulatory obligations about use of appropriate accounts software, use of a non-Queensland bank account and notification of substitute licensees and other places of business.
The OFT acknowledged prior to entering into the enforceable undertaking, Purplebricks had amended their appointment forms and processes to ensure consumers were aware of the terms of their fixed fee charges, and amended their website and advertising to ensure consumers were not further misled
Fair Trading acting executive director Craig Routledge said the enforceable undertaking showed the business and its directors were willing to work with the OFT to ensure obligations were met.
“Queenslanders have the right to expect that real estate agents will make accurate and honest agreements with their clients,” Routledge said. “If real estate agents breach laws and industry regulations, the OFT will not hesitate to investigate and pursue if required.”
Australian Property Journal
