A Connecticut real estate brokerage runs a digital advertisement that includes the phrase 'guaranteed to sell your home in 30 days or we pay you $1,000.' The brokerage has no intention of honoring this guarantee and uses it solely to attract listings. Which Connecticut law is MOST directly implicated by this advertising practice?
Correct Answer
A) Connecticut Unfair Trade Practices Act (CUTPA, CGS § 42-110a et seq.)
The Connecticut Unfair Trade Practices Act (CUTPA) under CGS § 42-110a et seq. prohibits unfair or deceptive acts and practices in commerce, including real estate advertising. A false guarantee designed to deceive consumers into listing with the brokerage is a classic deceptive trade practice under CUTPA. Violations can result in civil liability, attorney's fees, and license discipline by CREC.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
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