After months of speculation, Purplebricks yesterday confirmed it will cease operation in Australia.
The announcement comes just two-and-a-half years after Purplebricks entered the Australian market.
“When Purplebricks entered the market, REINSW raised concerns about the business model and its compatibility with the Australian conditions,” says REINSW CEO, Tim McKibbin. “However, our concerns were dismissed as a disingenuous protectionist strategy and stifling competition.
“Let’s hope those with regulatory responsibilities, who were quick to and loudly challenged the REINSW’s motives, will be equally visible and vocal now that Purplebricks has ceased trading.
“It was clearly dangerous and arrogant of Purplebricks to believe success in markets outside of Australia guaranteed success here.”
McKibbin says REINSW asked NSW Fair Trading to investigate a number of representations made by Purplebricks in its advertising, but despite repeated requests for the status of the investigation, nothing was provided.
“When it became obvious from numerous media articles that Purplebricks’s continued presence in the Australian market was unlikely, REINSW again asked NSW Fair Trading to intervene to protect consumers,” continues McKibbin.
“We are unaware if NSW Fair Trading did get involved, so all we can do is hope that Purplebricks exits the Australian market without causing consumer detriment.”
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