A Maryland brokerage firm, 'Atlantic Coast Realty,' wants to launch a new advertising campaign using the tagline 'Maryland's #1 Real Estate Team.' The broker has not conducted any formal market study to verify this claim. Under MREC advertising standards, what is the most significant risk associated with this advertising campaign?
Correct Answer
D) Using superlative claims like '#1' without substantiation may constitute misleading advertising subject to MREC disciplinary action
Maryland MREC regulations prohibit advertising that is false or misleading. Superlative claims such as '#1 Real Estate Team' that are presented as factual statements rather than mere opinion can constitute misleading advertising if they cannot be substantiated. Without a verifiable basis for the claim — such as a recognized industry ranking or documented market share data — MREC may find the advertisement misleading and subject the brokerage to disciplinary action under Md. Code Ann., Bus. Occ. & Prof. § 17-528.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
More Practice Of Real Estate Questions
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