KAR 11:105 Advertising- False, Misleading, or Deceptive Advertising

Section 5.
(1) False, misleading, or deceptive advertising is prohibited pursuant to KRS 324.117(1).

(2) An advertisement is false, misleading, or deceptive, if the advertisement:
(a) Is known or reasonably should have been known to be false or contrary to fact at the time of placement of the advertisement;
(b) Misleads or misinforms the general public in any manner; or
(c) Would lead a reasonable observer to believe that real estate brokerage services were being offered by an affiliated licensee or licensees independent of their real estate brokerage company or principal broker.

Section 6. Guaranteed Sales Plans. (1) If a licensee advertises a guaranteed sales plan, the licensee shall disclose in writing whether:
(a) A fee is charged for participation;
(b) The real estate shall meet qualifications for participation;
(c) The purchase price under a guarantee of purchase of the owner’s real estate shall be determined by the licensee or a third party;
(d) The owner of the real estate shall purchase other real estate listed for sale by the licensee or his or her designee; and
(e) An exclusive buyer agency agreement is required.

(2) The advertisement may be in print or electronic display, on radio, or on television and shall be clear and understandable.
(a) For print or electronic display advertising, the letters shall be at least twenty-five (25) percent the size of the largest letter in the advertisement;
(b) For television advertising, written communication shall appear on the screen:
1)At least three (3) seconds for the first line of lettering and at least one (1) second for each additional line of lettering; and
2)In letters that shall be at least eighteen (18) video scan lines in size for uppercase letters or at least twenty-four (24) video scan lines for uppercase capital letters if uppercase capitals and lowercase letters are used.

Section 7- Client Advertising.
Consistent with KRS 324.117(4), a licensee shall advise his or her client of the advertising obligations contained in this administrative regulation.

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