Property ‘tips’ under scrutiny
Watchdog urged to investigate video suggesting investors act like pack dogs.
The Commerce Commission has been asked to launch an urgent investigation into a video encouraging property investors to use fake names, work in packs to drive down prices and target desperate homeowners facing foreclosure.
Labour’s Consumer Affairs spokesman Michael Wood wrote to the watchdog yesterday to lodge an official complaint.
Wood said he believed the video’s content appeared to be in breach of the Fair Trading Act in terms of misleading or deceptive behaviour and false representations.
“The video clearly outlines unacceptable conduct and it’s our view that it’s possibly illegal under the Fair Trading Act,” he claimed. “I’ve specifically asked for an urgent investigation into the matter.”
Wood also called on the commission to issue an immediate statement condemning the tactics employed, and calling for anyone with relevant information to contact the watchdog.
His comments follow revelations in yesterday’s Weekend Herald about a tutoring video supplied free to members of the Auckland Property Investors Association (APIA).
It encourages investors to target deceased estates, desperate homeowners facing foreclosure, developers on the brink of bankruptcy, divorcees and “dummies” who don’t know the value of their homes.
The video, by Auckland property tycoon Ron Hoy Fong, promotes his company Ronovationz and also advises people to work in packs to drive down prices, and give vendors false names when making repeat offers.
APIA president Andrew Bruce apologised yesterday “for any offence” the video may have caused and said it was being immediately withdrawn.
Bruce said APIA was a non-profit organisation which relied heavily on sponsorship, including Fong’s Ronovationz company.
“We are also reviewing that relationship, having had the content of the video drawn to our attention.”
Key APIA sponsors are now reviewing their commercial partnerships with the investor group.
ANZ said they were “appalled” by the tactics being advocated, which did not align with the bank’s core values. Barfoot & Thompson said they would review the video footage with directors tomorrow and “and consider our sponsorship once we have all the facts”.
Consumer Affairs Minister Jacqui Dean said she was she concerned at the video’s content..
Fong has denied exploiting homeowners or engaging in deceptive conduct.