The Commissioner for Fair Trading has launched legal action against property developer Geocon, alleging the company’s advertising of its Grand Central Towers development in Woden could be misleading.
ACT Fair Trading Commissioner, David Snowden said the allegations related to advertisements and marketing for the development.
Mr Snowden said the action was taken to protect the rights of consumers from false and misleading marketing practices, if proven penalties of up to $10 million could apply.
“We allege that the claims in the marketing material for this development were false and misleading for consumers,” Mr Snowden said.
“We know that the purchase of a residential property is one of the largest investments a consumer can make and truth in advertising is critical to inform consumers so they are able to make informed and accurate decisions when purchasing goods and services,” he said.
“False and misleading representations undermine the level playing field and disadvantage others in the industry who may be doing the right thing when it comes to their marketing and promotions.”
Commissioner Snowden said it was alleged that from March 2018 Geocon made a number of false and misleading representations when advertising the development including that Stage 2 of the Canberra Metro Light Rail would stop at the Grand Central Towers development; that the travel time from Woden Town Centre to Canberra City on the Canberra Metro Light Rail would be under 10 minutes; and that purchasers would be able to obtain a seven per cent gross rental yield from a lessee.
“At the time, Stage 2 of the Canberra Metro Light Rail had not been approved by ACT Government or Commonwealth entities and the route and location of stops had not been finalised,” he said.
Mr Snowden said Fair Trading was seeking declarations, pecuniary penalties, injunctions, an adverse publicity order, an order for a compliance program and costs.
“This action sends a clear signal that we are actively scanning the market to ensure that representations made to consumers are accurate and not misleading,” he said.
