The competition watchdog is taking a Perth home building company to court for allegedly setting up misleading review websites that were misrepresented as being independent.
The Australian Competition and Consumer Commission (ACCC) has launched Federal Court proceedings against Perth-based Aveling Homes Pty Ltd over websites created by the company that allegedly gave an impression they were affiliated with an independent third party consumer review website, Product Review, when this was not the case.
Aveling Homes is also alleged to have managed comments on the websites - Aveling Homes and the First Home Owner's Centre - to obscure or remove unfavourable reviews.
The watchdog has begun proceedings for alleged misleading conduct and false or misleading representations.
"We believe the potential for harm from the conduct alleged in this case is significant, as buying or building a home is one of the biggest purchasing decisions for Australians," ACCC deputy chair Dr Michael Schaper said.
Dr Schaper said consumers were increasingly relying on online reviews and they should be able to trust that those reviews are independent and unbiased.
The ACCC also alleges Aveling's marketing manager, Sean Quartermaine, was "knowingly concerned" in the company's conduct.
The ACCC said it is seeking pecuniary penalties, injunctions and costs.
