Breaching Advertising Rules Can Lead to Large Fines

There are now so many ways for licensees to promote their services, such as TikTok, Linkedin, Instagram, and Facebook. As the number of marketing methods increases, we’re also seeing an increase in misleading advertising. So, we thought it would be helpful to share the steep penalties licensees could face if they violate provincial advertising rules.

Did you know that if a licensee breaches B.C. advertising rules, they can receive an administrative penalty of up to $100,000? If BCFSA proceeds to a formal Notice of Discipline Hearing, the licensee can face more fines up to $250,000 for individuals and $500,000 for corporations.

The greater the harm, the higher the fine

These penalties reflect the severity of the misconduct and how harmful it can be to consumers. Administrative penalties can add up quickly, too, as they include daily penalties for non-compliance. There is a $1,000 penalty for a first contravention, $2,000 penalty for a subsequent contravention, and then a $250 penalty per day of continued non-compliance (after the expiry of a non-compliance warning period).  

Recent case of advertising breaches

One recent decision shows how high the financial penalty can be when a B.C. licensee commits a breach of advertising rules. 

Late last year, a Vancouver-based licensee was fined $6,250 for breaching B.C. advertising rules on their social media and website. BCFSA found that the licensee failed to provide: 

• Their brokerage’s name on their Instagram and Facebook pages; 

• Their personal real estate corporation’s licensee name on their LinkedIn, Facebook, and Instagram pages, and their website;  

• Details on the claim that they were an “Award Winning Realtor” on their Instagram and X accounts. The licensee didn’t say the awards they had received or how they qualified for those awards, and didn’t say their brokerage’s name. 

• Details on their website where they said they were an “Award Winning Realtor for over 14 years” on their site. Again, the licensee did not say what awards they had received, how they qualified for those awards, and did not provide the name of their brokerage. 

The penalty for the licensee’s contravention of section 41 of the Real Estate Services Act (“RESA”) included 13 days of $250 daily penalties for 13 days of non-compliance after their deadline of August 20, 2024. BCFSA issued the licensee a total penalty of $6,250, pursuant to section 57(1) and 57(3) of RESA.  

Keep your ads and website compliant

This case study is a timely reminder to review your real estate ads, listings, social media, and website to make extra sure that you’re following B.C. advertising rules. 

You can check out BCFSA’s Advertising Guidelines, and read all recent disciplinary actions on our website at Real Estate Decisions | BCFSA.