Queensland's Office of Fair Trading has announced a crackdown on property spruikers and marketeers, commencing legal action against 10 dodgy operators while a further seven have agreed to legally binding constraints.

The Office of Fair Trading, with other consumer protection regulators, has been investigating property spruikers for two years. The investigation revealed that consumers were commonly found to be misled about their cooling-off rights, promised financial benefits that promoters could not deliver, and pressured into buying at ‘free’ seminars.

“The conduct of these promoters has been clearly designed to maximise profits, to the detriment of consumers who are given false promises and railroaded into deals that aren't right for them,” said OFT executive director Brian Bauer. “Consumers need to be very wary of agreeing to attend property investment seminars, where they'll cop the hard sell from skilled manipulators.”

In April, a Queensland-based property spruiker, Dymphna Boholt, agreed in an enforceable undertaking not to engage in conduct liable to mislead consumers, and make a $15,000 payment. Promotions company The Seminar Group Pty Ltd, trading as Knowledge Source, also entered into an enforceable undertaking with the OFT and made a $20,000 payment.

Real Estate Institute of Queensland CEO Antonia Mercorella welcomed the news, saying dodgy operators existed on the fringe of the property sector and the general public doesn’t always distinguish between these spruikers and genuine real estate agents. “These operators bring the entire profession into disrepute," said Mercorella. “All REIQ members adhere to a strict code of conduct and ethical standards of business practice as a condition of their membership. They are the best qualified to offer an independent opinion on market sale and rental prices...and most importantly, they can be trusted.”