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Under TREC rules, a license holder advertises a guaranteed sale program: 'Your home sold in 30 days or I'll buy it!' Under TREC rules, what advertising concern does this raise?

Correct Answer

D) The advertisement may be misleading if the guarantee has conditions, exclusions, or limitations that are not clearly disclosed

Under TREC rules, advertising a guaranteed sale program could be misleading if the terms, conditions, and limitations are not clearly disclosed. Any guarantee advertising must be truthful and include all material terms so consumers can make informed decisions.

Answer Options
A
No concern, because guarantee programs are encouraged by TREC to boost consumer confidence
B
Only brokers may offer guarantee programs; sales agents are prohibited from making such claims
C
Guarantee programs are automatically approved by TREC and do not require disclosure of terms
D
The advertisement may be misleading if the guarantee has conditions, exclusions, or limitations that are not clearly disclosed

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Related Topics & Key Terms

Key Terms:

guaranteed_salemisleading_advertisingdisclosureconsumer_protection
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