ALLEGATIONS of secret commissions to Geelong real estate agents have been referred to Victoria Police and consumer affairs watchdogs.
The allegations were included in a $1.4 million County Court writ lodged by MMP Greater Geelong, publishers of The Weekly Review, against Hayeswinckle Real Estate.
The writ alleges Hayeswinckle was induced to break a contract with the Review to switch its advertising to the Geelong Advertiser.
MMP communications director John Hine said the company had made a complaint about the alleged secret commissions to the police fraud squad, Consumer Affairs Victoria and the Australian Consumer and Competition Commission (ACCC).
The Estate Agents Act prohibits agents from retaining rebates or discounts on any goods or services, such as advertising.
Rebates or the value of any gifts must be returned to the vendor.
“Hayeswinckle vendors have every right to pursue their agent for the rebates we allege he has received from the Advertiser,” Mr Hine said.
The newspaper war broke out late last year between the News Ltd’s Advertiser and the Review over real estate advertising.
The Review, part owned by Fairfax Media, signed 25 of Geelong’s real estate agencies to become shareholders in the publication, receiving fixed dividends for set amounts of advertising spend.
The writ alleges Hayeswinckle was contracted to spend $470,400 annually in the Review but broke the contract at the behest of News Ltd, receiving $50,000 a year, hospitality and a diamond ring from the Advertiser.
Hayeswinckle also received “uncommercial discounting and the waiver or postponement of long overdue debt”, according to the statement of claim.
Mr Hine said the Advertiser’s attempt to claw back lost revenue was “no surprise”.
“What they have done is what we expected them to do …for him to deny this will end him up in a witness box in court and he will look silly.”
Mr Hine said the Review entered the Geelong market at the invitation of a group of real estate agents because the Advertiser’s pricing was “ridiculous”.
“They were charging $1600 a page before we launched, now they’re offering $750 a page. We turned it from a profitable to a loss-making business.
“We can understand why the Advertiser is so desperately trying to resuscitate the corpse.”
Hayeswinckle managing director Danny Hayes said he was caught in a media war.
“I’m being bullied into being told I can’t sell into the Geelong Advertiser or offer that product and I have a moral issue with that.
“I offer my vendors their marketing options. I can’t make people choose where to spend their marketing dollars.”
Mr Hayes accused the Review of inflating its prices to make a larger profit after locking real estate agents into its contracts.
He said he was prepared to lose money on his Review shareholding dividend to support vendor marketing choice.
“It’s clear (they) have to make an example of me so the other agents think twice about doing what I’ve done but I’m comfortable with our legal stance.
“This thing’s a lot bigger than me. The contract doesn’t stipulate than I cannot offer other print media. It’s got ACCC written all over it.”
A News Ltd spokesperson said any suggestion of improper behaviour on the Advertiser’s behalf was “ridiculous”.
The Independent does not make any suggestion of wrongdoing by any party.
