A property trader's been told off for making false claims about the value of vulnerable people's homes

Peter Lee has been issued a formal warning by the Commerce Commission.

Mr Lee and his business PWG Limited are likely to have breached the Fair Trading Act, by claiming the price he was offering for their homes was fair market value.

Commerce Commission chair Anna Rawlings says Mr Lee advised people to sell their property to his business, rather than through a real estate agent - to save agent and marketing fees.

She says it's misleading - because the business was based on purchasing below a fair market value.