Australian Competition & Consumer Commission v Real Estate Institute of Western Australia Inc

In the Federal Court of Australia, the Australian Competition & Consumer Commission (ACCC) brought an action against the Real Estate Institute of Western Australia Inc (REIWA) to address alleged breaches of the Australian Consumer Law (ACL). The ACCC contended that REIWA, through its conduct, had contravened certain provisions of the ACL, specifically sections 41 and 42, by engaging in misleading or deceptive conduct and engaging in conduct that was likely to mislead the public. The central dispute revolved around the practices of real estate agents affiliated with REIWA, particularly concerning the display of property prices and fees.

The court was tasked with determining whether REIWA's actions amounted to misleading or deceptive conduct under the ACL. This required a detailed analysis of the conduct in question, the understanding of the public likely to be affected, and the implications of such conduct on the market. The court needed to assess the information provided by real estate agents, the transparency of the fees involved, and whether these practices created a misleading impression about the costs associated with property transactions.

The court examined the evidence presented and found that REIWA had indeed engaged in misleading or deceptive conduct. The findings highlighted discrepancies between the advertised property prices and the actual costs borne by consumers, which included undisclosed fees. The court noted that REIWA had not taken adequate steps to ensure that its members disclosed all relevant information to consumers, thereby misleading the public about the true cost of property transactions. As a result, the court ruled in favour of the ACCC, finding that REIWA had contravened the ACL. The court ordered the parties to bring in minutes of any revised consent orders and undertakings within fourteen days of the date of this order, and reserved the issue of declaratory relief for potential future applications.