A mortgage brokerage advertises 'Guaranteed Lowest Rates!' on a billboard in Edmonton. A client, David, applies for a mortgage expecting this promise and is then offered a rate that is not the lowest he's found elsewhere. Under advertising regulations, what is problematic about the brokerage's claim?

Question: A mortgage brokerage advertises 'Guaranteed Lowest Rates!' on a billboard in Edmonton. A client, David, applies for a mortgage expecting this promise and is then offered a rate that is not the lowest he's found elsewhere. Under advertising regulations, what is problematic about the brokerage's claim?

Answer options:

• It implies all other brokerages in Edmonton are offering higher rates. ✅ Such a broad, unqualified claim is likely considered misleading advertising if it cannot be consistently substantiated for all clients.
• The advertisement does not explicitly state the terms and conditions in a font size visible from a moving car.
• It focuses solely on interest rates and does not mention other mortgage features.

Correct answer: Such a broad, unqualified claim is likely considered misleading advertising if it cannot be consistently substantiated for all clients.

Explanation: Misleading advertising regulations in Canada (e.g., Competition Act, provincial consumer protection acts) prohibit unqualified claims like 'Guaranteed Lowest Rates' if they cannot be consistently proven true for every consumer under all circumstances.