RECO Advertising Standards Practice Questions

Question 1 of 5

A brokerage is evaluating whether to offer virtual reality (VR) headset tours at their open houses. What advertising and consumer protection considerations should they assess?

• AVR tours have no regulatory considerations beyond standard advertising rules, under the advertising compliance framework established by TRESA and administered by RECO, which sets standards for property marketing, registrant identification, and truthful representation
• BOnly the VR headset manufacturer needs to consider regulatory requirements, based on the advertising guidelines that specify content requirements, format standards, and disclosure obligations for registrant marketing materials across all platforms
• CVR technology is too new to be subject to advertising regulations, under the advertising compliance framework established by TRESA and administered by RECO, which sets standards for property marketing, registrant identification, and truthful representation
• DVR tours present heightened accuracy concerns because immersive experiences may create stronger consumer impressions; the brokerage should ensure VR content accurately represents the property, consider accessibility for users who cannot use VR equipment, and assess health and safety considerations for headset use at open houses

Question 2 of 5

A registrant's website includes a blog with articles about local market conditions. One article contains a statistical claim about average home prices that is inaccurate. Does TRESA apply to blog content?

• ABlog content on a registrant's professional website is promotional in nature and subject to TRESA's accuracy requirements; statistical claims about market conditions must be based on reliable data, and the blog must include proper brokerage identification
• BBlog articles are editorial content exempt from TRESA advertising requirements, under the regulatory framework established by TRESA, which sets out the registration requirements, conduct standards, and enforcement mechanisms applicable to Ontario real estate professionals
• COnly blog articles that directly mention a listing are subject to TRESA, under the regulatory framework established by TRESA, which sets out the registration requirements, conduct standards, and enforcement mechanisms applicable to Ontario real estate professionals
• DBlog content is protected by freedom of expression and cannot be regulated, 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 Yara is considering purchasing leads from a third-party lead generation company. The company's website makes claims about lead quality and conversion rates. What should Yara consider from a compliance perspective?

• AThird-party lead purchases have no compliance implications for the registrant
• BLead generation companies are regulated by RECO, so no additional due diligence is needed — lead generation companies are not regulated by reco
• CYara should verify that the lead generation company collects leads in compliance with CASL and PIPEDA, that consumers consented to having their information shared, and that any advertising used to generate the leads complies with TRESA standards including brokerage identification
• DPurchasing leads is prohibited under TRESA, as this approach would address ensure the leads were collected in compliance with applicable laws

Question 4 of 5

A registrant advertises a property at $599,000 but has a private arrangement with the seller to accept offers starting at $549,000. Under TRESA, is the advertised price misleading?

• AAdvertising a property at one price while having a pre-existing arrangement to accept a significantly lower price can constitute misleading advertising because it misrepresents the seller's pricing expectations and could discourage buyers who assume the property is outside their budget
• BThe listed price is the asking price and the seller can accept any offer they choose, under the regulatory framework established by TRESA, which sets out the registration requirements, conduct standards, and enforcement mechanisms applicable to Ontario real estate professionals
• CPrivate price arrangements between sellers and salespersons are not regulated, 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
• DThe advertised price only matters for MLS purposes, not general advertising, 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 5 of 5

Pre-construction marketing materials often include 'artist's concept' imagery. Under TRESA, how must such imagery be handled in advertising?

• AArtist's concept imagery can be used without any qualification, 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
• BArtist's concept imagery must be clearly labelled as conceptual or illustrative, must not be so inconsistent with the actual project as to be misleading, and must not contain features or amenities that will not be part of the final development
• CAll imagery in advertising must be photographs of completed properties, 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
• DArtist's concepts are the developer's responsibility and registrants need not verify them, 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