Australia

A real estate agent made false claims about a property's features. Is this misleading conduct?

ACL s. 18
Key provision
$50M max fine
Corporate penalty
7 years jail
Criminal offence
ACCC enforcemen
Enforcing body
The Short Answer

Yes, false claims by a real estate agent about a property's features are likely misleading conduct under Australian consumer law.

What the Law Says

Australian law prohibits businesses — including real estate agents — from engaging in misleading or deceptive conduct when selling or promoting property.

The Australian Consumer Law (ACL), which forms Schedule 2 of the Competition and Consumer Act 2010 (Cth), is the main law protecting consumers from false or misleading statements. Section 18 of the ACL states that a person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.

This applies to all representations made by real estate agents — whether in advertising, emails, verbal statements at inspections, or online listings. It does not matter whether the agent intended to mislead; even an honest mistake can breach section 18 if it’s likely to mislead a reasonable consumer.

In addition, state and territory fair trading laws reinforce these protections. For example, the Fair Trading Act 1987 (NSW) and similar legislation in other jurisdictions prohibit misleading conduct in connection with the supply of goods and services — including residential property sales and leasing.

Statutory Text

A person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.

Competition and Consumer Act 2010 (Cth), Sch 2, s. 18 — Misleading or deceptive conduct

What to Do

1

Gather evidence (e.g., photos, emails, advertisements, witness statements) showing the false claim was made.

2

Lodge a complaint with your state or territory fair trading agency (e.g., NSW Fair Trading, Consumer Affairs Victoria).

3

Consider seeking legal advice — you may be entitled to remedies such as compensation, contract rescission, or price reduction.

4

Report serious or widespread misconduct to the ACCC via their website.

Sources

Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.