Australia

A developer's marketing for off-the-plan units was misleading about floor sizes. What remedies exist?

ACCC v. Diab
Key enforcement case
10 business day
Cooling-off period
$10M max penalt
ACL penalty cap
s. 18
Misleading conduct
The Short Answer

Buyers of off-the-plan units in Australia may seek remedies including contract termination, compensation, or price reduction if marketing about floor sizes was misleading, under the Australian Consumer Law.

What the Law Says

The Australian Consumer Law (ACL) prohibits misleading or deceptive conduct and false representations in property marketing, including for off-the-plan units.

Under the ACL, it is unlawful for a developer to make false or misleading statements about key features of a property — such as floor area — that influence a buyer’s decision. This includes brochures, floor plans, websites, and verbal assurances.

Section 18 of the ACL makes it illegal to engage in conduct that is misleading or deceptive or likely to mislead or deceive. Section 29(1)(m) specifically prohibits false or misleading representations about the 'area, size or dimensions' of goods or services — which applies directly to advertised floor sizes.

If a buyer relies on such misleading information and suffers loss, they may be entitled to remedies including rescission (cancellation) of the contract, damages, or a reduction in purchase price. The ACL also empowers courts to order injunctions, corrective notices, and penalties.

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.

Australian Consumer Law, s. 18 — Misleading or deceptive conduct
Statutory Text

A person must not, in trade or commerce, make a false or misleading representation that the goods are of a particular standard, quality, value, grade, composition, style or model or have had a particular history or particular previous use.

Australian Consumer Law, s. 29(1)(m) — False or misleading representations about area, size or dimensions

What to Do

1

Review all marketing materials (brochures, plans, emails, website content) for discrepancies between advertised and actual floor area.

2

Obtain an independent measurement report from a licensed surveyor or building certifier.

3

Lodge a complaint with your state’s consumer affairs agency (e.g., NSW Fair Trading, Consumer Affairs Victoria) or the ACCC.

4

Seek legal advice promptly — time limits apply, and some remedies (e.g., cooling-off rights) require action within 10 business days of signing the contract.

5

Consider negotiating with the developer for compensation, contract variation, or termination before commencing formal proceedings.

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.