New trade body CIELA tells Purplebricks to withdraw ‘misleading’ TV adverts

Fledgling trade body CIELA, the Charter for Independent Estate and Lettings Agents, has written to Purplebricks asking it to withdraw its TV advertising and comparable savings claims.

It says that if Purplebricks does not take reasonable steps to correct “instances of misleading representations on your website and television advertisements”, it will complain to the Advertising Standards Authority.

CIELA alleged in a lengthy press release issued yesterday that the “financial harm being done to consumers runs into tens of millions”.

In its letter to Purplebricks, CIELA alleges that while statements made in the adverts are not factually inaccurate, they “serve to mislead the reasonable, average consumer”.

They are therefore, says CIELA, in breach of parts of the UK Code of Broadcast Advertising, and the Consumer Protection from Unfair Trading Regulations.

The letter says that for the TV adverts to compare Purplebricks’ flat fee with a high street agent’s no sale, no fee commission is “irresponsible and misleading”.

The letter further attacks the savings quoted by Purplebricks being based on a commission of 1.8%: “CIELA demands substantiation of this percentage”.

The letter requests Purplebricks to remove its TV adverts; refrain from comparing its service which it provides with a non-refundable fee, to the service provided by high street agents; and communicate in future adverts that the fee is non-refundable, even where the property is not sold or let.

CIELA also demands changes on the Purplebricks website, including: “Do not label the fee a ‘selling fee’, because it merely guarantees a listing, so label it as such.”

The letter ends: “We look forward to your prompt response on this important matter.

“We look forward to improving the industry together, and providing improved and transparent service to vendor-customers.

“Because CIELA considers this a high priority, be advised that we will submit a complaint to the Advertising Standards Authority in the event that we are not satisfied that you are taking reasonable steps to correct instances of misleading representations on your website and television advertisements.”

Yesterday evening, a spokesperson for Purplebricks said: “We don’t propose to comment in response to CIELA’s press release.”

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26 Comments

  1. 123430

    I don’t think PB with an almighty valuation of £641m will be too overly concerned about a bloke who thinks he is important and thinks he is the voice of all, whose Easymatch business is probably worth £2.

    Why don’t you (CIELA) take PB to court, suing them for your members lost of income, damage to reputation etc.. and claim the brothers are creating the biggest pyramid scheme in the world. This might be more creditable than asking them to amend their ads.

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    1. Moolamarkie

      CIELA has nothing to do with standing up for the independence and everything to do with revenue generation.

      The annualised cost for joining CIELA is £420. (ARLA/NAEA is £260).  Total market size is around 38,000 in terms of independent estate agents who are registered directors at Companies House.  If CIELA was ti reach NAEA membership numbers, is annual revenue would be £4,410,000.

      An estimate of Easymatch’s revenue is around the £300,000 mark and declining.  CIELA is an opportunity to replace Easymatch’s revenue.

      CIELA only needs 714 members to replace its existing revenue or 1.87% of the 38,000 total market.

      I’ve written quite an extensive piece on the whole CIELA premise that I’ll be publishing soon…

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      1. PeeBee

        Moolamarkie

        I very much doubt that EVERY one of those 38000 ‘Directors’ of Independent Estate Agencies would either

        a) qualify – see the criteria here: http://ciela.co.uk/proposed-outline-charter-membership-rules-and-qualifying-criteria/

        or

        b) want (or need for that matter) to be ClubCIELA Members.

        HOWEVER, that aside, your post is completely on the money (literally) otherwise.

        I just wonder how many are actually marvelling at those lovely new clothes that Emperor Charlie would have us believe he’s wearing…

        …cos all I can see is his winkie!

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        1. PeeBee

          Just when you thought it couldn’t get any… whatever it’s got… look what’s just been Tw@tted as the must-read piece of the moment:

          http://ciela.co.uk/clarion-call-independent-agents-time-act/

          Somebody shoot me!

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  2. danny

    A spokesman for purplbricks said “who? …. is it the one from blind date “

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    1. Property Pundit

      Thanks for your contribution to the debate Danny, as constructive as always.

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      1. danny

        Your welcome , to help more I’ve done a more accurate headline ” new industry body who will soon want your money alongside the other three or four your pay releases press statement about something you care about that they could have done anyway to convince you that you should give them some money soon ” There, how helpful is that ….

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        1. PeeBee

          danny – always one to court controversy! ;o)

          Correct me if I’m wrong on this – but you have previously stated that you are an Estate Agent – yes?

          Assuming I haven’t got it wrong, and that being the case… are you on the ‘corporate’ or ‘independent’ side of the fence – or in the ‘other’ categories that belongs to neither of those camps?

           

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          1. PeeBee

            Just when you thought it couldn’t get any… whatever it’s got… look what’s just been Tw@tted as the must-read piece of the moment:

            http://ciela.co.uk/clarion-call-independent-agents-time-act/

            Somebody shoot me!

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            1. PeeBee

              Stuck on wrong place – reposted above where it should be.

              danny – why the ‘Dislike’?

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  3. PeeBee

    It says that if Purplebricks does not take reasonable steps to correct “instances of misleading representations on your website and television advertisements”, it will complain to the Advertising Standards Authority.”

    I know of at least one ‘someone’ who can provide the reply to this very complaint to @ASA_UK.

    That would save CILLA a lorra lorra bother writing the letter and using their new Club funds putting a stamp on it…

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  4. AgentV

    None of us like the adverts because they are misleading. I have now spoken to a few people who thought it meant they could sell their house for free if they used PB. This drives potential vendors to make initial contact, and as we all know that’s half the battle in marketing.

    It appears the adverts have been extremely successful for PB…obtaining them many new instructions, and I personally am glad somebody is trying to do something about them.

    However, even if this works and the adverts are removed, the project will have been highly successful for them. We all know the most that will happen is that they will carry on until the ASA intervenes with an ‘informal resolution’ or the like. I bet the threat of that must have them quaking in their boots!!!

    The only way the ASA can stop this situation of misleading claims from advertisers, whoever they may be, is by enforcing a ban on advertising on all channels where you have made the claims for an equivalent period of time to what you ran for.

    Found to have a misleading claim in an ad for three months….three months ban from all advertising where it was shown….simples!!!

     

     

     

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  5. Stevie

    Small body or not he has more balls than you lot whining on here yet doing nothing about it but that could be down to the fact we all know asa will at best give a slap on the wrist.

     

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    1. Robert May

      Or  someone has done something about it, got a response but not used it to publicise what they have done.

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    2. PeeBee

      Stevie

      You can have b@lls as big as a blue whale – if you don’t know what to do with them, they’re just an extra weight to carry round.

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  6. Thomas Flowers

    Well done CIELA.

    It is good to see someone actually trying to defend traditional agents position?

     

     

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  7. Thomas Flowers

    PS I do know lots of others trying as well but what I mean are those people paid to run agency networks.

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  8. is it just me

    And what are the NAEA / ARLA doing about protecting the reputation of proper estate agents/letting agents against  the threat of these “Marketing facilitators”, and the highly likely hood of tenant application fees been banned.Oh I forgot  they spend  two years  ( (yes Two years!) coming up with ground breaking idea of “Propertymark”!  Small they may be, but at lease the  CIELA are trying to do something constructive. May be  we should  all resign from the useless NFOPP and give our support to something new

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    1. AgentV

      The problem is those damaging the reputation of proper estate agents are also members of the NAEA. That’s why they say and do nothing…..conflict of their potential income!

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  9. Ric

    I nearly posted this yesterday, as I watched one of these PB adverts in full for the first time. I typically race to the control to turn over.

    So if I did not miss something the one where the couple are talking to another couple goes….

    Gent 1. “Ive just sold my house”

    Gent 2. “Did you use PB”

    Gent 1. “They’re just online aren’t they”

    Gent 2. “No no no, they are proper estate agents”

    Now forgive me, but I did not catch any part where gent 2 went back to say, sorry yes, they are just online though!

    Now for me…. if I did not miss something…… gent 2 completely mislead anyone who watches this and could have given the distinct impression they have an office, as “no no no” to that question, could only have been “yes yes yes”

    If they do clarify this in the advert somewhere (sorry!) but either way, no no no straight after that question to me is a breach.

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    1. AgentV

      Most people I have spoken to who have seen the advert thinks PB sell properties for free!!! If that isn’t misleading…then I don’t know what is!!

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      1. Ric

        Yep, to be honest I don’t watch them…. but the thing which jumped out to me was how the answer to them being “just online” was “No no no” I think that with “free” or “cheap” is the issue as the over all impression was….

        They are not just online, so must have offices, and are cheap or free even. but proper estate agents, they were not…

        however I wonder with the increase in corporate casualties those listers and managers taking local territories could start to make their ground force that bit smarter as time goes on, when a homeowners sees a face they know and think, yup this person is an estate agent.

        Interesting times.

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  10. Trevor Mealham

    The trouble is Purple bricks hasn’t signed up to CIELA, so CEILA can’t tell it what to do. It can highlight concerns. But even the Ombudsman’s have limited powers n certain instances.

    The best CEILA can do is to report any concerns substantiated with fair and honest evidence and refer what is being breached to the likes of the ASA.

    CEILA will need to be seen moving forward that it has protocols in how it handles its members and how it raises awareness of its members complaints on others. If it treads wrongly, or in a bullying wy. PB now has very deep pockets.

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    1. Woodentop

      So Trev what have you done? Aren’t you supposed to be well connected as you attend many industry meetings as an advisor for the industry? Now that would be something to put on you CV.

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      1. Frown Please

        Leave trev alone. He points out all cartel related business for everyone.

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  11. Property Paddy

    This is how it looks to me.

    Bad dog, naughty dog, go to bed you naughty bad dog !

     

    Did I miss anything ?

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