A brokerage, 'Prairie Homes Realty,' recently launched a new website. On the 'About Us' page, they state: 'We are the #1 real estate team in Edmonton!' without providing any basis or verifiable data for this claim. According to RECA's Advertising Rules, what is wrong with this statement?

Question: A brokerage, 'Prairie Homes Realty,' recently launched a new website. On the 'About Us' page, they state: 'We are the #1 real estate team in Edmonton!' without providing any basis or verifiable data for this claim. According to RECA's Advertising Rules, what is wrong with this statement?

Answer options: ✅ The statement is considered misleading or deceptive because it lacks substantiation or verification.

• The statement is acceptable as it promotes the brokerage's success.
• Such claims are only prohibited if they compare the brokerage to a specific competitor.
• Only individual associates, not brokerages, are subject to advertising rules regarding performance claims.

Correct answer: The statement is considered misleading or deceptive because it lacks substantiation or verification.

Explanation: RECA's Advertising Rules state that licensees must not make claims that are misleading, inaccurate, or unverifiable. Stating 'We are the #1' without substantiating data is a violation of these rules.