Embryonic industry organisation The Charter for Independent Estate and Letting Agents (CIELA) has asked the hybrid agency Purplebricks to withdraw its current TV advertising campaign and stop making comparison fee claims.

The request was made in a letter sent yesterday to Purplebricks’ West Midlands HQ in Solihull, on what was CIELA’s inaugural day.

The ‘club’ also says that it will be submitting a complaint to the Advertising Standards Authority about these matters if Purplebricks does not take “reasonable steps” to address the issues.

The letter, which runs to some 900 words, claims that some of Purplebricks’ advertising is “misleading to consumers” even though CIELA admits they are “not factually inaccurate”.

FEE STRUCTURE

The letter also goes on to criticise Purplebricks for comparing its fee structure and operation with that of traditional agents and the way the company calculates the vendor savings that its adverts are based on.

It also explains why Purplebricks’ business model should be looked again given current Consumer Protection legislation, and why it thinks the company’s advertising may require scrutiny by the Advertising Standards Authority.

CIELA is also worried that vendors do not understand the difference between the hybrid Purplebricks model and traditional agents, in particular that Purplebricks charges up-front fees to list, while in general traditional agents charge post-sale fees for a sale.

But it takes a more conciliatory note towards the end of the letter, revealing that it want to work with Purplebricks to “improve the industry together”.

The Negotiator contacted Purplebricks about the letter and was told that it would not be making any comment.