In South Australian real estate, which of these is 'bait' pricing in advertising?
Correct Answer
B) Advertising at a price the property is not genuinely available for, to draw enquiries
Section 35 of the Australian Consumer Law prohibits bait advertising: advertising goods or services at a specified price that the advertiser has no reasonable grounds to believe will be available at that price. In real estate, the equivalent is quoting a price the property will not genuinely sell for in order to draw buyers. That is misleading conduct under the ACL, and in SA s 24A of the Land and Business (Sale and Conveyancing) Act 1994 requires any advertised price to be no lower than the greater of the agent's estimate and the vendor's price in the agency agreement, with fines, possible imprisonment and loss of commission for breaches.
Why This Is the Correct Answer
Bait pricing is advertising a price at which the property is not genuinely available to draw enquiries. It is misleading under the Australian Consumer Law and, in SA, breaches the advertised price rules in s 24A.
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