What are the Rules?

Not only is ambiguous advertising widely thought of as a disservice to customers, but the practice carries with it serious legal implications, as well. Dottie Callina, manager of communications for Atlanta’s local Better Business Bureau branch, shared her insights on the matter.

“The primary responsibility for truthful and non-deceptive advertising rests with the advertisers,” she said. “So, yes, anyone who advertises falsely, or uses superlative or other types of advertised claims found in our Codes could be reviewed for an ad review inquiry.”

In Georgia, a single portion of the state’s Commerce and Trade Code, authored in 2010, addresses the usage of a false status in official marketing materials. The relevant section, 10-1-372, and specifically clauses 2, 3, 5, 7 and 12 of subsection a, reads:

10-1-372. When trade practices are deceptive; common-law and other remedies unaffected

a. A person engages in a deceptive trade practice when, in the course of his business, vocation, or occupation, he:

2. Causes likelihood of confusion or of misunderstanding as to the source, sponsorship, approval, or certification of goods or services;
3. Causes likelihood of confusion or of misunderstanding as to affiliation, connection, or association with or certification by another;
5. Represents that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that he does not have;
7. Represents that goods or services are of a particular standard, quality, or grade or that goods are of a particular style or model, if they are of another;
12. Engages in any other conduct which similarly creates a likelihood of confusion or of misunderstanding.

If accused of leveraging a false status, Callina assured that the BBB would require the in question entity to substantiate claims using an independent source.

“We would not accept a company’s own data supporting such claims as ‘lowest prices,’ ‘the premier store,’ etc,” Callina added.

Separate from state law, false or misleading advertising is a practice expressly forbidden by NAR’s Realtor Code of Ethics, which is updated every year. In article 12 of the document, the language clearly states that Realtor members “shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing and other representations.” Failure to do so, while not resulting in legal action, could cost a Realtor their membership, as well as the accompanying perks.