TRUTH IN ADVERTISING LAWS ---- Avoid a lawsuit, complaint, etc filed because of false advertising

Here's a topic brokers should probably discuss during the regular office meetings. It's a gentle reminder, and a reinforcement of truth in advertising. And that includes online advertising.

TRUTH IN ADVERTISING LAWS

From www.Business.gov, here's a link to Truth-in-Advertising LAWS that states:

"Advertising laws are aimed at protecting consumers by requiring advertisers to be truthful about their products and to be able to substantiate their claims. All businesses must comply with advertising and marketing laws, and failure to do so could result in costly lawsuits and civil penalties. So before you start an advertising campaign, it's important you understand some basic rules."

The Federal Trade Commission (FTC) is the main federal agency that enforces advertising laws and regulations. Under the Federal Trade Commission Act:

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  • Advertising must be truthful and non-deceptive;
  • Advertisers must have evidence to back up their claims; and
  • Advertisements cannot be unfair.

Yes, there are guides against Bait Advertising "an alluring but insincere offer to sell a product or service which the advertiser in truth does not intend or want to sell. Its purpose is to switch consumers from buying the advertised merchandise, in order to sell something else, usually at a higher price or on a basis more advantageous to the advertiser. The primary aim of a bait advertisement is to obtain leads as to persons interested in buying merchandise of the type so advertised.

DEFINITION OF FALSE ADVERTISING (from Wikipedia) 

False advertising or deceptive advertising is the use of false or misleading statements in advertising. As advertising has the potential to persuade people into commercial transactions that they might otherwise avoid, many governments around the world use regulations to control false, deceptive or misleading advertising. Truth in labeling refers to essentially the same concept, that customers have the right to know what they are buying, and that all necessary information should be on the label.

Bottom line, regardless of which media one uses, print, broadcast, or the internet, the same cautionary principles should apply about engaging in false advertising.

REALTOR CODE OF ETHICS

Refer to Article 12.

REALTORS^® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations. REALTORS^® shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing, and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional. (Amended 1/08)

In my recent post, I lamented about an agent posting for sale on Zillow some listings that have already sold. This is a clear violation of Standard of Practice 12-4 that states "REALTORS^® shall not offer for sale/lease or advertise property without authority. "

Ethical dilemma: could/should you re-post SOLD listings as ACTIVE to get internet market presence?

Since we are required to complete the Code of Ethics and Standards of Practice, this is a good reminder of our obligations to be truthful. And that includes truth in advertising.