Australian Competition and Consumer Commission v Meriton Property Services Pty Ltd

The Australian Competition and Consumer Commission (ACCC) brought an action against Meriton Property Services Pty Ltd in the Federal Court, alleging that the respondent engaged in misleading or deceptive conduct under the Australian Consumer Law. The ACCC claimed that Meriton misled the public about the nature, characteristics, and suitability for their purpose of the accommodation services offered by Meriton through their participation in a system called Review Express, which solicited reviews from guests. This included actions such as masking email addresses of guests who had complained and withholding email addresses of guests where there had been a major service disruption.

The court was required to determine whether Meriton's actions had the effect of reducing the number of negative reviews and whether this conduct was likely to mislead or deceive potential customers. Additionally, the court had to consider whether Meriton's conduct was liable to mislead the public regarding the nature, characteristics, or suitability of their accommodation services. The court also addressed the issue of whether certain representations in reports prepared by Meriton from data collected by an online service were covered by the business records exception to the hearsay rule.

In its decision, the court found that Meriton's conduct did have the effect of reducing the number of negative reviews and was likely to mislead or deceive potential customers. The court ruled that Meriton's actions were misleading or deceptive under the Australian Consumer Law. The court also found that the representations in the reports were covered by the business records exception to the hearsay rule. Consequently, the court ordered that the matter be listed for a hearing to determine the appropriate remedies.

The court did not enter final orders at this stage but instead listed the matter for a hearing to determine the appropriate remedies. This decision underscores the importance of transparency and honesty in the solicitation and presentation of customer reviews, particularly in the context of the accommodation services industry.