The Australian Consumer Law (ACL), as applied in Victoria, prohibits misleading or deceptive conduct. Which of the following scenarios would most likely constitute misleading conduct by an estate agent?
Correct Answer
B) Stating that council has approved plans for an extension when no approval has been granted.
Falsely claiming that council-approved plans exist for an extension is misleading or deceptive conduct under the ACL. This can lead to significant penalties, compensation claims, and disciplinary action. Agents must ensure all representations about a property are accurate and supported by evidence.
Why This Is the Correct Answer
Telling buyers that council has approved an extension when it has not is a false statement of fact about the property's development potential. Buyers rely on such statements, so it is misleading or deceptive conduct under the Australian Consumer Law.
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