The Federal Court has handed down $18 million in penalties to We Buy Houses Pty Ltd (WBH) and its principal Richard Otton after they published a book and held a series of seminars that led consumers to believe they could buy a house for $1. In ACCC v We Buy Houses Pty Ltd (No 2) [2018] FCA 1748 the court found WBH had breached s18 of the Australian Consumer Law through a series of misleading representations in their book and seminars, including that consumers could buy a house and build a property portfolio without a loan, without using their own money, and without any real estate experience. WBH made $20 million off of these products from 2011-2014, but will now face almost as much in penalties for the misleading conduct, with WBH ordered to pay $12 million and Otton to pay $6 million for the breach.

Leave a Reply

%d bloggers like this: