A Massachusetts real estate brokerage places an advertisement in a local newspaper that includes the phrase 'Best prices in the South Shore — no one sells for less!' A competitor brokerage files a complaint with BORREBS, arguing the statement is unsubstantiated. Under Massachusetts regulations, how would this advertisement most likely be evaluated?
Correct Answer
A) The advertisement may violate MGL Chapter 93A if the claim is materially false or misleading and could deceive a reasonable consumer
Under MGL Chapter 93A, unfair or deceptive acts and practices in trade or commerce are prohibited. While some advertising claims constitute non-actionable puffery (vague subjective boasts), a specific comparative claim like 'no one sells for less' could be evaluated as a material factual assertion that is capable of being proven true or false. If the claim is unsubstantiated and could mislead a reasonable consumer, it may constitute a deceptive practice under Chapter 93A. BORREBS can also take disciplinary action for false or misleading advertising under its regulations.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
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.
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