Horizon Realty Group is a licensed New Jersey brokerage. The company wants to run a radio advertisement that states: 'Horizon Realty Group — New Jersey's #1 Real Estate Company — Selling more homes than anyone in the state!' The broker has no statistical data to support the '#1' or 'selling more homes than anyone' claims. Under New Jersey law, this advertisement is most likely:
Correct Answer
D) A violation, because unsubstantiated superiority claims can constitute deceptive advertising
Under the New Jersey Consumer Fraud Act (N.J.S.A. 56:8-1 et seq.) and NJREC advertising regulations, real estate advertisements must not contain false, misleading, or deceptive statements. Claiming to be '#1' or 'selling more homes than anyone' without verifiable statistical support constitutes an unsubstantiated superiority claim that can mislead consumers and violate New Jersey's prohibition on deceptive advertising.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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