Perth-based home builder Aveling Homes has been fined $380,000 for engaging in conduct liable to mislead the public in connection with two online review websites.

Following proceedings instituted by the Australian Competition and Consumer Commission, the Federal Court found that during periods in 2016, Aveling represented that each of its review websites were independent of the builder and were affiliated with the website www.productreview.com.au when that was not the case.

Group sales and marketing manager Sean Quartermaine was ordered to pay $25,000 for being knowingly concerned in the conduct.

“Aveling held back bad reviews from its review website to give a more favourable impression of its services,” ACCC chairman Rod Sims said.

“Consumers are increasingly relying on online review sites to assist with their purchasing decisions. They are entitled to expect that review sites are independent and unbiased.”

Before the ACCC took action, the top 20 reviews posted on www.avelinghomesproductreviews.com.au between November last year and March, customers rated Aveling homes at least 4.5 stars.

The court also found that the overall star rating and reviews on websites were more favourable towards Aveling’s products and services than would have been the case if all the reviews received by Aveling were published.

The features and appearance of the review websites that caused the contravening conduct were designed by Mr Quartermaine.

Aveling undertook to the court not to engage in similar conduct for a period of three years and agreed to contribute to the ACCC’s costs.

The company has operated in WA since 2009.

In a statement this afternoon, Aveling said the website avelinghomesproductreviews.com.au was established in 2014 to publish a selection of customer testimonials.

“These are verified reviews completed by clients who have built with us. We acknowledge that we did not post all positive and negative reviews on this website,” the company said.

“We now appreciate that some consumers were likely to have gained the wrong impression that the website was operated independently of Aveling Homes or was in some way associated with productreview.com.

“We very much regret and apologise if anyone got that wrong impression. We should not have created such an impression or omitted the positive and negative reviews.

“We welcome all feedback about our business – whether positive or negative – and we are constantly looking for new ways to improve our operations based on the content of this client feedback.”

Aveling said changes to the site since last December now made clear that the review website is operated by the builder.