Comparative Claims and Testimonials Practice Questions

Question 1 of 5

A registrant's former client posts a video testimonial on their personal social media account praising the registrant's services. The registrant shares the video on their own professional accounts. Does sharing a client's voluntary testimonial require authorization?

• ASharing publicly posted content never requires authorization, based on the advertising guidelines that specify content requirements, format standards, and disclosure obligations for registrant marketing materials across all platforms
• BOnly the social media platform's terms of service apply, not PIPEDA, under the advertising compliance framework established by TRESA and administered by RECO, which sets standards for property marketing, registrant identification, and truthful representation
• CSocial media content is public domain and can be used by anyone, under the advertising compliance framework established by TRESA and administered by RECO, which sets standards for property marketing, registrant identification, and truthful representation
• DEven though the testimonial was voluntarily posted by the client, the registrant should obtain the client's consent before sharing it on professional accounts because the context changes from a client's personal expression to the registrant's advertising, and PIPEDA requires consent for using personal information for commercial purposes

Question 2 of 5

Salesperson Tariq wants to include client satisfaction statistics in his marketing — specifically, '98% client satisfaction rate.' Under TRESA, what must Tariq be able to demonstrate?

• AStatistical claims in advertising do not require supporting evidence, given that be substantiated, based on the provisions of TRESA that govern how registrants must conduct themselves in real estate transactions, including obligations related to competence, honesty, and client protection
• BTariq must be able to substantiate the claim with documentation showing the methodology used, the sample size, how satisfaction was measured, and who conducted the survey; the data must be reliable and representative, not based on selective or unrepresentative sampling
• CClient satisfaction statistics can be estimated based on the registrant's general impression, based on the provisions of TRESA that govern how registrants must conduct themselves in real estate transactions, including obligations related to competence, honesty, and client protection
• DOnly RECO can publish satisfaction statistics for registrants, under the regulatory framework established by TRESA, which sets out the registration requirements, conduct standards, and enforcement mechanisms applicable to Ontario real estate professionals

Question 3 of 5

Salesperson Elena's listing description states 'this home features the best view in the neighbourhood.' A competing neighbour files a complaint arguing the claim is false. Under TRESA, how is this type of claim classified?

• ASuperlative claims are always prohibited in real estate advertising
• BOnly price-related claims can be considered false advertising — false advertising under tresa covers all types of claims — about properties, services, credentials, market performance, and any other aspect of real estate practice
• CAny claim by a salesperson is automatically considered truthful under TRESA, on the basis that tresa does not treat all registrant claims as automatically truthful
• DGeneral puffery — vague, subjective statements like 'best view' — may be more tolerable than specific factual claims, but registrants should avoid superlative claims that could be interpreted as factual representations; the line between permissible puffery and misleading claims depends on how a reasonable consumer would interpret the statement

Question 4 of 5

Under Competition Bureau guidelines, when must an endorsement or testimonial in advertising be accompanied by a disclosure of the relationship between the endorser and the advertiser?

• ADisclosures are never required for endorsements in real estate advertising, considering the scope of disclosure obligations that apply to the registrant's role in the transaction and the nature of the information in question
• BDisclosures are only required for endorsements from celebrities, because material connections must be disclosed regardless of the endorser's celebrity status
• CA material connection between the endorser and the registrant or brokerage must be disclosed whenever the connection might affect the weight or credibility a consumer gives to the endorsement — this includes paid endorsements, incentivized reviews, and testimonials from family members or business associates
• DDisclosures are only required if the endorsement appears on television, based on the materiality threshold for disclosure obligations, which requires assessment of whether the information would reasonably affect a client's decision-making process

Question 5 of 5

A salesperson's website ranks highly in search results for the term 'best salesperson in Markham.' The salesperson did not claim this title; it resulted from SEO optimisation. Is there a compliance issue?

• ASearch engine rankings are not within the registrant's control and create no compliance issues — while search engine algorithms determine rankings, the registrant controls the seo optimisation that influences those rankings
• BOnly paid search results are subject to advertising regulations
• CSearch engine results are governed by Google's policies, not TRESA
• DIf the registrant actively optimised their website for the term 'best salesperson in Markham' through meta tags, page titles, or content, this constitutes an unsubstantiated superlative claim in advertising; the registrant should review their SEO strategy to ensure optimised terms do not make claims they cannot substantiate