Broker Chen operates 'Chen Realty' in St. Paul, Minnesota. He places an online ad for a listed property that includes the phrase 'Best deals guaranteed — we always beat any competitor's commission rate!' A consumer files a complaint with the Minnesota Department of Commerce. Under Minnesota advertising rules, this claim is most likely:
Correct Answer
C) A violation, because the claim is misleading and makes an unsubstantiated guarantee that could deceive consumers
Under Minn. Stat. Ch. 82 and MN DOC advertising rules, licensees are prohibited from making false, misleading, or deceptive statements in advertising. The claim 'we always beat any competitor's commission rate' is an unsubstantiated guarantee that could mislead consumers. Minnesota law requires that advertising be truthful and not create false impressions. Absolute guarantees that cannot be verified or consistently fulfilled constitute deceptive advertising.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
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