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ARTICLE · 17 NOVEMBER 2018

$3M penalty for manipulating customer reviews on website

Meriton was found to have engaged in deceptive practices which prevented guests from posting potentially negative reviews.

AustraliaConsumer Protection

In Australian Competition and Consumer Commission v Meriton Property Services Pty Ltd (No 2) [2018] FCA 1125, Meriton Property Services Pty Ltd (Meriton) has been penalised $3 million for manipulating their customer reviews on the third party review website, TripAdvisor. This penalty follows the Federal Court's 2017 finding that Meriton had breached sections 18 and 34 of the Australian Consumer Law in Schedule 2 of the Competition and Consumer Act 2010 (Cth) (ACL), which concern misleading or deceptive conduct and conduct that is likely to mislead the public as to the nature of any services.

Meriton was found to have engaged in deceptive practices which prevented guests from posting potentially negative reviews on TripAdvisor, thus creating an overall unduly favourable impression of Meriton accommodation, which primarily supplies serviced apartments for short-term stays.

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