Under the Australian Consumer Law, which of the following is considered misleading or deceptive conduct when advertising a property for sale?

Q: What is the correct answer to: Under the Australian Consumer Law, which of the following is considered misleading or deceptive conduct when advertising a property for sale?

The correct answer is Stating the property has 'ocean views' when it only has partial water glimpses. Option A is correct because claiming 'ocean views' when only partial water glimpses exist constitutes misleading conduct under Section 18 of the Australian Consumer Law. The term 'ocean views' creates a specific expectation of clear, substantial water vistas. When the reality is merely partial glimpses, this misrepresents a material fact that could significantly influence a buyer's decision and property valuation. Courts have consistently held that property features like views are material facts where misrepresentation can constitute misleading conduct.

Q: What background knowledge is needed for this Consumer Protection question?

The Australian Consumer Law, particularly Section 18, prohibits misleading or deceptive conduct in trade or commerce. In real estate, this applies to all advertising and marketing materials. Key principles include: representations must be accurate about material facts; subjective opinions and sales puffery are generally acceptable; the test is whether conduct would mislead a reasonable consumer; and material facts include property features, condition, location, and legal status. Real estate agents must ensure all advertising claims can be substantiated and accurately represent the property's characteristics.

Q: What is a good way to remember the answer to this Consumer Protection question?

Remember VIEW: Verify the claim is true, Investigate if it's material to buyers, Examine if a reasonable person would be misled, Weigh the consequences of false expectations. For property features like views, pools, or proximity claims, always apply the VIEW test to determine if advertising could be misleading. When encountering advertising questions, mentally apply VIEW to each option. Ask: Can this claim be verified as completely true? Would this matter to a typical buyer? Could a reasonable person be misled? What are the consequences if the claim is false?

Q: What exam tip applies to this Consumer Protection question?

Focus on factual claims versus opinions. Specific property features (views, size, amenities) must be completely accurate. Subjective terms (motivated, must sell) are usually acceptable. Look for gaps between what's claimed and what actually exists.

Q: How does this Consumer Protection concept apply in Australian real estate practice?

An agent lists a property as having 'ocean views' based on glimpses of water visible from an upstairs window through gaps in neighboring buildings. A buyer purchases primarily for this feature, paying a premium. Upon settlement, they discover the 'view' is minimal and partially obstructed. The buyer could claim misleading conduct under ACL, potentially leading to compensation claims, professional disciplinary action against the agent, and damage to the agency's reputation. The agent should have described it as 'water glimpses' or 'partial water views' instead.

Question

Consumer ProtectionMisleading ConductEASY

Under the Australian Consumer Law, which of the following is considered misleading or deceptive conduct when advertising a property for sale?

Answer Options

A

Stating the property has 'ocean views' when it only has partial water glimpses

B

Using terms like 'motivated seller' or 'must sell'

C

Advertising the property as 'under offer' when negotiations are ongoing

D

Including professional photography that shows the property in good lighting