In the course of investigation, the branch manager admitted that he did not verify the identities of the purchasers before providing the information to the marketing division of his company. He deeply regretted the misunderstanding and inconvenience that might have caused to the readers of the press release. The company pleaded that it did not intend to issue false or misleading information in the press release. It undertook to review its internal procedures on release of information.
The Disciplinary Committee, having heard the evidence from all parties and the admissions of facts and liabilities of the branch manager and the estate agency company, ruled that the company had committed a breach of section 9(1) of the Estate Agents Practice (General Duties and Hong Kong Residential Properties) Regulation by causing or permitting the issuance of an advertisement wholly or partly relating to its estate agency business which included statement or particular that was false or misleading in a material particular. The Disciplinary Committee imposed an order of reprimand and a fine of $200,000 on the company.
The Disciplinary Committee also decided that it was an irresponsible act for the branch manager to provide unverified information to the marketing division of his company. Such act would bring disrepute to the trade. The Disciplinary Committee ordered a temporary suspension of his licence for 2 months.
Section 9(1) of the Estate Agents Practice (General Duties and Hong Kong Residential Properties) Regulation
A Licensed Estate Agent shall not cause or permit to be issued an advertisement wholly or partly relating to his estate agency business which includes any statement or particular that is false or misleading in a material particular.
Paragraph 3.7.2 of the Code of Ethics
Estate agents and salespersons should avoid any practice which may bring discredit and/or disrepute to the estate agency trade.
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