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Meriton faces legal action over online reviews

 

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The Australian Competition and Consumer Commission has launched legal proceedings against billionaire property developer Harry Triguboff’s Meriton in Federal Court over allegations it stopped guests lodging negative reviews on the travel website TripAdvisor.

The ACCC alleges Meriton “engaged in misleading or deceptive conduct” from November 2014 to October 2015.

The allegation is that Meriton inserted additional letters to guests’ email addresses provided to TripAdvisor to render them ineffective and not sending other guest email addresses to TripAdvisor.

“We allege that Meriton’s conduct was a deliberate practice, undertaken at the direction of Meriton’s senior management, aimed at minimising the number of negative reviews. This practice was likely to create a more positive or favourable impression of the standard, quality or suitability of accommodation services provided by Meriton,” ACCC Commissioner Sarah Court said.

“Consumers rely on independent review platforms like Trip Advisor when making purchasing decisions.  If reviews are manipulated to falsely create a more favourable impression about a provider, consumers may choose that provider on the basis of that falsehood over another accommodation provider who has not engaged in misleading conduct.”

Meriton Serviced Apartments said it would fight the claims.

“In every Meriton Serviced Apartment there is a notice inviting all guests to review their stay on TripAdvisor,” group general counsel Joseph Callaghan said in a statement.

“Meriton does not agree that the public has ever been deceived or misled. The proceedings will be defended.”

by Leon Gettler, November 25th 2016