Real estate giants clash in court over marketing claims

Australia’s two leading online residential real estate advertisers, Domain and REA (realestate.com.au), are suing each other over alleged misleading marketing claims. In a Federal Court lawsuit filed in May, Domain accused REA of wrongly claiming it finds buyers for nine in every 10 properties listed on its platform, saying the statements are unsupported by underlying data and breach consumer laws. REA responded that it “stands by” its claims, saying they were based on analysis of one million sales and verified by consultancy Deloitte. REA also launched a cross-claim, alleging Domain made false statements, including that listings featuring 3D modeling using Matterport Suite generate 5.5 times more views and 4.2 times more buyer inquiries than comparable listings. Domain pointed to limitations in REA’s model, saying it cannot rule out that buyers may have seen properties elsewhere first. Domain is seeking an injunction to stop further advertising of the claims. The dispute has involved an April REA release, ASX shareholder messaging, and promotion including a billboard outside Gold Coast Airport.