A sales agent engages in false and misleading advertising in relation to selling a property. Under the Competition and Consumer Act 2010, what possible penalties could apply to the agency as a company
Under the Competition and Consumer Act 2010 (Cth) in Australia, false and misleading advertising is considered a breach of the Australian Consumer Law (ACL). If a sales agent or agency engages in such conduct, several penalties and consequences may apply to the agency as a company, including:
Financial Penalties: The Australian Competition and Consumer Commission (ACCC) can impose significant fines. For corporations, the maximum penalty for a breach of the ACL can be up to $10 million, or three times the value of the benefit obtained from the conduct, or 10% of the annual turnover of the corporation, whichever is greater.
Injunctions: The court may issue injunctions to prevent the agency from continuing the misleading conduct or from engaging in similar conduct in the future.
Compensation Orders: The agency may be ordered to pay compensation to consumers who suffered loss or damage as a result of the misleading advertising.
Publicity Orders: The court may require the agency to publish a corrective advertisement or notice to inform consumers about the misleading conduct.
Reputational Damage: Beyond legal penalties, the agency may suffer reputational harm, which can impact its business operations and customer trust.
Compliance Programs: The agency may be required to implement compliance programs to ensure adherence to consumer protection laws in the future.
Criminal Penalties: In some cases, if the misleading conduct is found to be particularly egregious, individuals within the agency may face criminal charges, which can lead to further penalties, including imprisonment.
It is important for agencies to ensure that their advertising practices comply with the ACL to avoid these potential penalties.