Issuing misleading information in the press release

A branch manager who provided unverified information on the sale of 5 Home Ownership flats to his estate agency company for the latter's issue of a press release, which turned out to contain false and misleading information, was suspended from estate agency practice by the Disciplinary Committee for 2 months.

The Disciplinary Committee also reprimanded and imposed a fine of $200,000 on his company for causing or permitting the issue of such press release.

The case started with the branch manager claiming to receive an enquiry from an anonymous mainlander who showed interest in the purchase of several Home Ownership flats for rental income purposes. According to the branch manager, the mainlander did not inspect the flats but indicated that he might instruct his relatives to complete the purchases. The branch manager later found that there were 5 completed transactions in Home Ownership flats. Before he verified the identities of the purchasers, he just presumed the purchases were made by the purchasers on behalf of that mainlander and provided the information to the marketing division of his company.

Upon receipt of the said unverified information, the estate agency company issued a press release on it to the media. A list showing the descriptions of the 5 Home Ownership flats, the sizes and the prices was also included in the press release. The information was widely reported in the press.

Subsequently, it was suspected that the contents of the press release might be false or misleading. The Estate Agents Authority therefore initiated investigation.