A brokerage publicly boasts about its 'exclusive' access to a database of motivated buyers, implying that other brokerages do not have such resources, despite the information being widely available through standard industry channels. This claim is designed to attract sellers to list with their brokerage. Which ethical obligation is being breached?

Question: A brokerage publicly boasts about its 'exclusive' access to a database of motivated buyers, implying that other brokerages do not have such resources, despite the information being widely available through standard industry channels. This claim is designed to attract sellers to list with their brokerage. Which ethical obligation is being breached?

Answer options: ✅ The obligation to avoid misrepresentation in advertising

• The duty of confidentiality
• The duty to provide competent service
• The requirement for timely deposit of funds

Correct answer: The obligation to avoid misrepresentation in advertising

Explanation: Section 10 of the Code of Ethics (O. Reg. 580/05, now under TRESA) dictates that a registrant's advertising must not be false, misleading, or deceptive. Misleading claims about 'exclusive' buyer access, when not genuinely unique, violate this principle.