Property spruikers receive warning letters from states
The Victorian, New South Wales and West Australian state governments have issued letters to property spruikers in their states outlining their obligations under consumer law.
Victoria’s consumer affairs minister, Heidi Victoria, spoke to the ABC about the high pressure, persuasive techniques used by property spruikers at seminars and events.
“The sort of things that we’re concerned about is, for example, a high pressure sales environment – so when people come along just for information, but then feel obliged to either spend money on an education program, or that type of thing,” said Victoria.
“We want to make sure they’re not feeling pressured into signing anything on the night, that they are given plenty of time. But also to understand that those operating in the space must give a 10 day cooling off period.”
In February, the ABC reported that West Australia, New South Wales and Victoria’s governments were monitoring 15 property spruikers. However, Victoria said though some property spruikers had received letters outlining their legal obligations, Consumer Affairs Victoria was not currently investigating any particular property spruikers.
“This is just more a general ‘get to know you’ sort of letter, and say, ‘these are your rights and obligations’,” Victoria said.
“We’re very much about educating people who are operating in any business. The type of letter that has gone out to them just outlines their responsibilities, and also their obligations, and of course if they don’t abide by their obligations, and if they’re not working correctly under Australian consumer law, then we can take it much further.”
Of people investing in property through a self-managed super fund, Victoria said consumers must know their rights.
“A lot of people have to understand that when they’re doing this sort of investment, that they need legal and financial advice,” she said.
“It’s not something that can be taken lightly. As I said, it really is something that many people put their life savings into, and the last thing they want is for that to go belly up. So they do need to know their rights, their obligations as consumers and make sure they are investing in something that’s going to be safe, and something that has that long term projection.”
To see the letter sent by West Australia’s Commissioner for Consumer Protection, see next page
West Australia’s notice to the state’s property spruikers warns them of penalties associated with misleading consumers, which include fines of up to $1.1 million.
In a letter sent to property spruikers by West Australia’s Commissioner for Consumer Protection Anne Driscoll, she states:
In particular:
She adds:
Driscoll notes that misleading claims “can result in penalties of up to $1.1 million for a corporation or $220,000 for an individual”.
