Misleading information has the potential to bring any industry into disrepute and the Commerce Commission is concerned the actions of a few could cost the entire Real Estate industry over time.

The Commission was responding to today's prosecution in the North Shore District Court of Sails Realty Limited, Mangawhai, Northland. Sails was fined $2,000 plus $130 court costs for breaching section 14(1)(b) of the Fair Trading Act by making a false or misleading representation concerning the location and/or characteristics of sections in "The Sands" subdivision.

Sails advertised in the New Zealand Herald in October last year that property in "The Sands" subdivision had "magical sea and rural views, aasy stroll to the waters edge " Together with the wording, the advertisements gave the impression that the view shown was from sections in the subdivision when in fact that was not the case.

"Real Estate agents need to understand that advertisements are often a consumer's first introduction to a company or a product," said the Commission's Director of Fair Trading Deborah Battell

"Any type of misleading information will bring an industry into disrepute, and we are concerned to protect honest traders, to ensure that competition is fair and to ensure that the whole industry is not tainted by the actions of a few."

Ms Battell added that industry complaints had increased over the last 12 months. Complaints were not only received from consumers but also traders, who are very concerned that competition should be fair in the industry.

Media contact: Fair Trading Director Deborah Battell

Phone work (04) 498 0908, cellphone 025 208 0841

Senior Advisor Communications Jackie Maitland

Phone work (04) 498 0920, cellphone (025) 249 3407