ASIC takes action over $59p/w property ads

The corporate watchdog has taken action against companies associated with a Perth-based property developer over misleading advertisements that claimed consumers could buy an investment property from "just $59 per week".

The Australian Securities and Investments Commission has issued four infringement notices to Australian Property Alliance Pty Ltd after the advertisements were published on various websites, the Nicheliving Facebook page, YouTube, and on television between May and October last year.

ASIC was concerned the ads didn't disclose the details that underpinned a negative gearing investment strategy, including the consumer being required to pay an upfront amount of $35,000.

The company was fined $40,800.

ASIC was also concerned about historical advertising published by Wealth WA Pty Ltd, which suggested, among other things, that its financial services could assist consumers to pay off their mortgages in eight years instead of 30.

Both APA and Wealth WA have agreed to engage an independent compliance consultant to review their advertising policies and procedures, and adopt a training regime to ensure staff know the legal requirements in relation to marketing.