The Australian Federal Court imposes a record penalty on a real estate company for false and misleading representations (We Buy Houses)

Rotten Otton hit with highest ever ACL penalty* Following investigative action taken by the ACCC in 2015, the Federal Court has, yet again, broken its own record for penalties imposed under the ACL. In a warning to other companies offering wealth creation strategies that are too good to be true, the Court has ordered We Buy Houses Pty Ltd (WBH) and its principal, Richard Otton, to pay $12 million and $6 million respectively for false and misleading representations. The orders come after Gleeson J’s judgment on liability was handed down in 2017. In that judgment, Her Honour condemned the statements made by Mr Otton and WBH, which included that consumers could “buy a house for $1”. Along with the severe penalties, both Mr Otton and the company have been permanently banned from supplying

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  • King & Wood Mallesons (Sydney)

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Edward Slattery, The Australian Federal Court imposes a record penalty on a real estate company for false and misleading representations (We Buy Houses), 11 August 2017, e-Competitions Bulletin August 2017, Art. N° 88602

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