All Homes Pty Ltd - s.87B undertaking

All Homes operates a website (www.allhomes.com.au) which is used primarily by real estate agents in the ACT, New South Wales and Tasmania for the advertising of residential properties for sale and rent. All Homes also provides market research data on its website, including past sales information.

The ACCC has accepted a section 87B undertaking from All Homes in respect of ACCC concerns that All Homes had attempted to induce real estate agents to arrive at an understanding where they would not charge less than two per cent of the sale price of a property for the supply of real estate agents services.

ACCC concerns arose following an email sent by All Homes to over 1000 real estate agents in the ACT and Queanbeyan region. The email indicated All Homes' intent to restore reasonable agency fees to former higher levels and proposed that All Homes publish on its website a notice to sellers notifying sellers that they should expect to pay a fee range of between two and three per cent of the sale price of a property for the services of an experienced real estate agent.

Following ACCC action, All Homes acknowledged that in sending the email there was a risk of inducing a contravention of section 44ZZRJ and/or a risk of section 45 of the Competition and Consumer Act 2010. To address the ACCC's concerns, All Homes provided the ACCC with a court-enforceable undertaking that it will:

• for a period of three years from the commencement of the undertaking, not send or request information to registered real estate agents about a suggested fee or range of fees for real estate agent services in an area
• send a letter to each real estate agent who received All Homes' email, notifying them of the ACCC's concerns and advising real estate agents that they are free to set the prices at which they provide their services, and
• implement an internal compliance program.