Property Value Calculator – Valuation in Two Minutes?

Determine the value of a property in just two minutes using a property value calculator? Sounds tempting, but is misleading. That is how the Regional Court (LG) Berlin saw it and has prohibited corresponding advertising statements by a real estate brokerage firm.

The operator of a website for the sale of properties offered free valuation of properties. When the terms "makler hamburg" were entered as part of a Google search, an advertisement from the company appeared with the statement

"Property valuation in two minutes".

On the linked landing page, the user could provide further information and enter his email address. He was then informed that further information would be required for the valuation. This would then be discussed with the user. No valuation of the property took place.

On Facebook, the company advertised with the statement

"Property Value Calculator 2020"

After entering the postcode on the landing page, the user was shown various prices for a few seconds. He was then informed that a telephone contact with the company would be required for an accurate estimate.

The Wettbewerbszentrale (Competition Centre) considered the advertising statements to be misleading and unsuccessfully issued a warning to the company.

LG Berlin Prohibits Misleading Advertising Statements on Property Value Calculator

The LG Berlin has, in itsJudgment of 05.10.2021 – 103 O 69/20prohibited the advertising statements "Property valuation in two minutes" and "Property Value Calculator" as misleading and thus in violation of competition law.

The statement "Property valuation in two minutes" can only be understood to mean that a user will be informed of the current market value of the property within a period of two minutes. An average consumer would not understand the time specification as the time expenditure that he himself must undertake to enter the data into the form.

The advertised service is not directed only at consumers who actually wish to sell a property. It also addresses persons who merely wish to ascertain the current market value of a particular property out of general interest. The latter in particular would be interested in simply being shown a value quickly.

The statement "Property Value Calculator" is also misleading if the user is not directly informed of a valuation result with regard to the property after entering the relevant data.

The average consumer understands the term calculator to mean that he will receive a result immediately after providing the requested data. Particularly on the internet, calculator programs are common, with which consumers can determine values or contributions of various kinds. The consumer will not expect that in addition to entering the data, a telephone call must be made before the requested value of the property is actually communicated to him.

Therelevance under competition lawis also present. Consumers will decide in particular on the basis of the statements to visit the company's website and deposit the requested data and thus enable direct, individual contact.

Conclusion

Advertising statements that give the impression that the user can obtain a result in a very short time after entering certain data into a property value calculator are misleading if he does not subsequently receive the advertised result and is called upon to contact the advertising company further.

The question remains open whether the result must be displayed directly on the website or whether notification by email is sufficient.