Australian Competition and Consumer Commission v We Buy Houses Pty Ltd

The Australian Competition and Consumer Commission (ACCC) sued We Buy Houses Pty Ltd and its director, Mr. Otton, for allegedly misleading or deceptive conduct in relation to real estate investment strategies. The ACCC alleged that the respondents represented that consumers could buy houses for $1, without a deposit or bank loan, with little or none of the consumer's money, and generate income and profit by dealing with property in various ways. The respondents made these representations in a book, on several websites, at free seminars, and in various training courses. The court had to decide whether the representations were misleading or deceptive and whether Mr. Otton was knowingly concerned in or a party to the contraventions.

The court found that the respondents contravened section 37 of the Australian Consumer Law by making the System and Strategies Representations in the book. The court found that the respondents engaged in conduct that was misleading or deceptive or was likely to mislead or deceive in contravention of section 18 of the Australian Consumer Law. The court also found that the respondents contravened sections 29(1)(f) and (g) of the Australian Consumer Law. The court found that to the extent that the representations were made by We Buy Houses Pty Ltd and not Mr. Otton, Mr. Otton was knowingly concerned in and party to the making of the representations.

The court refused leave to file the third further amended statement of claim dated 5 September 2016. The applicants had to file and serve draft orders contended for to give effect to these reasons on or before 18 August 2017. The proceedings were set down for the making of orders to give effect to these reasons on a date to be fixed in consultation with the Associate to Gleeson J.