At the time this article was published, Pindi Kinnisvara board member Peep Sooman told Kinnisvarauudised.ee that developers were using fake reservations on project websites. Such reservations are a misleading commercial practice under the Consumer Protection Act and are prohibited.
Why use fake reservations?
They make a project appear more successful and create the impression that it is attractive and selling well.
Beyond conflicting with sound marketing practice, this conduct is prohibited by consumer protection law.
Unfair commercial practices are prohibited
These include misleading and aggressive practices. Fake reservations give consumers inaccurate information about availability and are therefore likely misleading.
What are the consequences?
A breach does not automatically invalidate a transaction, but may support withdrawal or a damages claim. The business also risks consumer authority proceedings, sanctions and reputational damage.
This article was also published on Kinnisvarauudised.ee.