PURPLE BRICKS HIT WITH $20,000 FINE BY AUSTRALIAN TRADING STANDARDS FOR MISLEADING THE PUBLIC ON UP FRONT FEES
Purplebricks has been hit with a $20,000 (£11,215) fine by Trading Standards in Queensland, Australia.
It has avoided possible court action after entering into two enforceable undertakings after alleged breaches of the Australian Consumer Law and the Property Occupations Act.
The OFT said in a statement: “Between November 2016 and June 2017, Purplebricks Australia Pty Ltd, entered into agreements with consumers who were not made aware of the terms of the fees charged.
“Consumers were also misled about additional services offered by Purplebricks, despite the agency advertising ‘low, fixed fees’ for their services when selling property.”
The OFT said it had received “several” complaints from consumers “alleging false and misleading representations on the Purplebricks website and advertising regarding their fees, particularly that the fixed fees were payable regardless of whether a property was sold, or their services were cancelled”.