January 7th - 2012

Advertising guidelines simplified by RECO

Issues related to advertising in real estate were among the most common complaints about registrants to the Real Estate Council of Ontario over the past year, according to the council’s 2010-2011 annual report.

Issues related to advertising in real estate were among the most common complaints about registrants to the Real Estate Council of Ontario over the past year, according to the council’s 2010-2011 annual report.

Complaints about advertising were second only to those about unprofessional conduct, the report states. In a random review of 3,000 ads, the council found that more than 50 per cent were non-compliant with the guidelines but not necessarily with the legislation.

To increase the level of compliance and reduce complaints, RECO has recently revamped its guidelines for all forms of real estate advertising, including those for print, radio, television, the internet and social media. The council regulates the trade of real estate in Ontario on behalf of the Ministry of Consumer Services.

Bruce Matthews, deputy registrar at RECO, says the council began by trying to determine the size of the problem around advertising infractions as well as reasons for the volume of complaints.

“When we reviewed the previous guidelines, we discovered that we needed to modernize them to better connect to the legislation,” says Matthews. “As well, the organization and structure of the guidelines were not always easy to use or understand.”

Through feedback at trade shows, outreach activities and the 2009 Registrant Satisfaction Survey, RECO learned that registrants wanted more visual examples and information communicated in a clearer and more comprehensible format. The result is a new look and feel to the website, newsletter and advertising guidelines.

The revised guidelines feature large, colourful visual examples and more clearly written text. To complement the guidelines, RECO also produced a straightforward checklist, question-and-answer document and multimedia package -- including video and power point presentations that walk people through the information.

“We hope that brokerages will use this information in their meetings to talk about advertising with their teams,” says Matthews.

One of the biggest changes to the guidelines is that all references to an ad’s contact information are gone. Matthews notes that this information is not an issue for RECO and is best dealt with by individual brokerage policies.

Another change involves the way that groups of individuals can describe themselves. Previously, a group of individual registrants could only call themselves a team. The new guidelines now permit groups to choose any word they like so long as it does not imply a separate corporate entity, such as a company.

The ad guidelines are now categorized in two parts – what must be included and what is prohibited. For instance, all advertising by a registrant, including a brokerage, broker or salesperson must include clearly and prominently the name of the registrant placing the ad. Any false, misleading or deceptive statements are among the prohibited items. A registrant who uses the checklist can easily review an ad to ensure that it complies with the guidelines.

“These new, simplified guidelines allow registrants more flexibility and creativity for developing advertising to promote their services,” says Matthews. “Our main message to registrants is that as long as you say what you mean and mean what you say in your advertising, chances are that there won’t be any issues.”

Look online for RECO’s new Advertising Guidelines and Checklist at www.reco.on.ca. Click on Industry Professional and look for the box titled Advertising to view the video. Find PDF versions of the guidelines and checklist under the video screen. You can also access the guidelines by logging on to MyWeb.

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For more information contact

Ontario Real Estate Association

Jean-Adrien Delicano

Senior Manager, Media Relations

JeanAdrienD@orea.com

416-445-9910 ext. 246

Ontario Real Estate Association
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