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Practice Of Real EstateLicense LawHARD

Tennessee affiliate broker Trent places an ad on a national real estate platform that claims he is a 'Top-Ranked Agent in Tennessee' and 'Voted #1 Real Estate Professional in Memphis.' These claims are based on an online poll conducted by a local blog with 50 participants. Under Tennessee TREC advertising rules, which of the following best describes the status of these claims?

Correct Answer

D) The claims are a violation because they are misleading representations that could deceive consumers about Trent's qualifications

Tennessee TREC advertising rules prohibit false, misleading, or deceptive advertising. Claiming to be 'Top-Ranked' or '#1' based on an informal online poll of 50 participants on a local blog is misleading because it implies an official, broadly recognized ranking that does not exist. Such claims could deceive consumers into believing Trent has credentials or recognition he does not actually possess, violating TREC's prohibition on misrepresentation in advertising under Tenn. Code Ann. § 62-13-312.

Answer Options
A
The claims are permissible as long as Trent can produce documentation of the blog poll upon request
B
The claims are permissible because superlative marketing language is considered puffery and not subject to TREC regulation
C
The claims are a violation only if a competing agent files a formal complaint with TREC
D
The claims are a violation because they are misleading representations that could deceive consumers about Trent's qualifications

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Related Topics & Key Terms

Key Terms:

advertising_rulesmisleading_claimssuperlative_advertisingmisrepresentation

Related Concepts

FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.

A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.

In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.

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