Misleading Conduct – Off-the-plan Apartment with an Artist’s Impression

The judgment of Ripani v Century Legend Pty Ltd [2022] FCA 242 found:
A purchaser can rescind a contract of sale based on a misleading and deceptive representation based on inaccurate marketing material.

Key points

• the developers used computer-generated images in the marketing brochures to sell their apartments
• The developers were aware that the images were not buildability
• The Developer argued that it was only an “artist’s impression” and there was a disclaimer in the marketing brochure.
• the Court held that the word “artist’s ‘impression’ is an insufficient disclaimer

The Court ordered the developer to return the deposits, plus pay damages to the purchasers.

Take-Away Points

Disclaimers must not use ‘vague, ambiguous and meaningless’ language.