A real estate agent tells a potential buyer that a property 'definitely will increase in value by 15% within two years' based solely on their personal opinion. Under Australian Consumer Law, this statement is:
Correct Answer
C) Prohibited, because a baseless definite prediction is misleading or deceptive conduct
Making definitive statements about future property value increases without reasonable basis constitutes misleading or deceptive conduct under the Australian Consumer Law. Agents must ensure any representations about property performance are based on factual evidence and clearly identified as opinions when appropriate.
Why This Is the Correct Answer
Under section 4 of the ACL, a representation about a future matter made without reasonable grounds is taken to be misleading. A definite promise of 15% growth based only on opinion fits that rule.
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