GREC Changes to (Internet) Advertising Effective May 1, 2014

Advertising – This Rule change primarily addresses the use of the Internet to advertise real estate. In response to a pattern of repeated violations related to advertising, particularly involving the internet, it became clear that the Rule needed to be updated to take into consideration the many methods now utilized for advertising real estate including internet, wireless, texting, messaging, digital, and various other types of technology. The revised Rule applies to all forms of media as detailed in the definition. To understand the advertising Rule, it is critical to understand the definition of media and the definition of

advertising. It is also important to understand that the advertising Rule is limited to the advertisement of specific real estate, not services

 Media. For the purposes of this Rule, the term “media” includes, but is not limited to, print, photographs, broadcast, and the Internet including, but not limited to, such examples as newspapers, magazines, flyers, posters, business cards, billboards, radio, videos, television, signs (including office, directional, "for sale," "for lease," “sold,” or vehicle signs), newsletters, voicemail, email, facsimile transmissions, Internet websites, blogs, video blogs, property listing database services, email

farming, news groups, discussion lists, bulletin boards, social networking/social media, instant text messages, multimedia advertising, banner ads, pop-ups, and similar media.

 Advertising” or “advertisement” means any manner, method, or activity by which a licensee through the use of any media makes known to the general public real estate for sale, rent, lease, or exchange.”

Advertising on the Internet.

 Any advertising on the Internet by a licensee of real estate for sale, rent, lease, or exchange shall disclose the name and telephone number of the licensee's firm on every viewable web page of a website….with some exceptions

• Some forms of internet advertising have very limited space or a limited number of characters that can be displayed. When it is not possible to include the firm  name and telephone number on every page, the Rule offers a method to be in compliance by including a direct link (needing only one-click) to a web page that can comply with this Rule and provide the needed information.

• Examples of situations that require a direct link to a display that contains this information include:

o Electronic messages of limited information or characters (such as texts, tweets,

                   instant messaging, etc.)

o Advertising on an internet website not owned or controlled by the licensee or firm and that                 

    website's terms of use limit the licensee's ability to comply with this paragraph, such as not

     allowing the inclusion of the listing firm name, firm phone number and in the correct font

     size, etc.

 The long standing rule that the licensee’s name and phone number cannot be any larger or more prevalent than the firm name and main phone number still holds true.

• The name of the firm advertising the real estate for sale, rent, or exchange and the firm’s telephone number must appear in equal or greater size, prominence, and frequency than the name or names of any affiliated licensees or groups of licensees; and the phone number must be a number at which the public can reach a broker or a manager of the firm.

Maintenance and Updating of Data

 Advertising real estate on a website or internet posting etc. that is outdated shall be updated or removed from the website within thirty (30) days of the information becoming outdated.

• The requirements of this Rule apply to advertising and information on a

website that is within the licensee's ownership or direct control.

• Many brokers hire independent firms or consultants to maintain the firm or individual’s web site and use various listing services to advertise real estate. If a licensee's website is maintained by an authorized third party (other than its firm or its franchisor’s webmaster), the licensee shall provide to the third party, a timely written notice, by mail, fax, or electronic means, of any updates to outdated information or information to be removed from the website, so that such updates or information removal may

be accomplished in accordance with this Rule.

• Prior to this Rule change, a broker or firm had 10 days to remove outdated internet advertising. This revision increases the time period to remove or correct information to 30 days as opposed to the 10 days previously stated in the rules.

• A licensee who provides such timely notice to the authorized third party shall not be in  violation of this Rule if the third party fails to effect an information change as notified.

• A broker should establish policies and procedures to maintain records of the notice provided to the authorized third party.

 No licensee shall be responsible for any information taken from the licensee's website, or other advertising, if placed on a website, or in other advertising outside the licensee's ownership and/or direct control and without the licensee's consent.

Most of the advertising rules have not changed, such as the requirements regarding:

1. Written permission from the owner to advertise real estate – in any media.

2. Broker supervision of all advertising by affiliates (associate brokers, salespersons, and community association managers), (including advertising the licensee’s own property).

3. Prohibition of discriminatory advertising.

4. Prohibition of misleading advertising.

5. Restrictions and requirements regarding licensees disclosure when advertising as principals (and including GA R.E. License #)

6. The use of Trade Names and franchise names.

7. Advertising approved schools or courses.

Every broker and every other licensee can benefit by a review of the entire advertising Rules and Regulations accessible from the Commission website.

In addition to the updated advertising Rule, a licensees must comply with the Unfair Trade

Practices found in O.C.G.A. §43-40-25 (b) (1), (2), (11), (12) and (21) which address misleading advertising regarding services, not just specific real estate. Representation, disclosure, and other practices are addressed as well.

The Commission approved the advertising Rule change to further protect the public interest and insure that any advertisement of real estate is in compliance with the License Laws, Rules, and Regulations. The update Rule also states that a licensee shall make every reasonable attempt in advertising to assure the public knows that they are being contacted by a licensee

Key Points: In Effect May 1, 2014

• The definition of Media is very broad, including, internet, texting, etc., etc., etc.

• The broker is responsible for all advertising of real estate in any media done by the firm or its

affiliates. It must include the firm name and phone number unless space is limited, and then it

must have a direct link to a webpage(s) each citing the firm name and phone number.

• Advertising of real estate in any media must be updated or removed within 30 days of

becoming outdated.