Harcourts' online ad ruled misleading

The whatpricemyhouse website. Photo / Supplied

The Advertising Standards Authority has found against Harcourts, New Zealand's largest national real estate agency chain, over a misleading advertisement for an online residential valuation service.

On September 25, a consumer logged on to the website whatpricemyhouse.co.nz which offers a free comparable sales report.

"The website indicated the report would be completed and sent via email within 48 hours and in the meantime I would receive census data and a postcode profile via email," the complainant said.

"I received no contact from this company until a phone call on September 28 when I was advised an appraiser would need to visit my property in person in order to complete the report. When I returned the phone call on September 29, it was answered by Harcourts. The person I spoke to confirmed that whatpricemyhouse was part of Harcourts."

She complained that she had not had the comparable sales report after four days, did not get the census data and it was not revealed on the website that an appraiser would have to visit the property or that the website was part of Harcourts.

The authority said advertising must be prepared with a sense of social responsibility to consumers and society, have a truthful presentation and not have omissions, ambiguity or exaggerated claims.

In response, the advertiser said the website provided clients with a free report "and also gives the client the opportunity to speak to an experienced real estate agent within their area to give a more detailed appraisal if needed".

Harcourts had written to apologise to the complainant.

The authority found a level of ambiguity in the ad meant it was misleading.

"By not disclosing its affiliation with a real estate company, the advertisement was misleading by omission. The complaints board found that the advertisement was likely to deceive or mislead the consumer as to the claims made," it said.