A Connecticut brokerage sends unsolicited text messages to homeowners in a neighborhood, advertising its services and inviting them to call for a free home valuation. Some recipients are on the National Do Not Call Registry. Which of the following BEST describes the regulatory situation for the brokerage?
Correct Answer
B) The brokerage may face federal FTC enforcement and potential CREC discipline for violations of applicable solicitation rules
Real estate brokerages are not exempt from the National Do Not Call Registry rules enforced by the FTC. Unsolicited commercial text messages to numbers on the Do Not Call Registry can violate federal Telephone Consumer Protection Act (TCPA) rules and FTC regulations. Additionally, CREC may impose disciplinary action against a Connecticut licensee whose advertising or solicitation practices violate applicable laws, as such conduct may also constitute a CUTPA violation or grounds for license discipline under CGS Chapter 392.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
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