The Competition Act governs deceptive advertising in Ontario real estate.

Trust is the currency in Ontario’s real estate scene. Buyers want to believe what they’re shown, sellers want fair competition, and agents want to keep things clean, clear, and above board. That shared want for honesty isn’t just good manners—it’s backed by a powerful rulebook. When it comes to deceptive advertising in Ontario real estate, the Competition Act is the primary statute you should know. It’s the federal law designed to keep the market fair, and it has teeth that bite whenever claims in property ads mislead or misrepresent.

Let me explain how this matter plays out in the real world. Advertising is more than a pretty photo and a catchy line. It’s a promise. A promise that a property actually costs what you’re advertising, that the features you list are accurate, and that the terms you imply about financing, incentives, or availability can be relied on. When those promises aren’t honest, consumers pay the price—in trust, in dollars, and in time. The Competition Act exists to prevent that erosion of trust and to keep competition healthy. It does so by prohibiting false or misleading representations and by curbing deceptive marketing tactics that could sway buyers and sellers unfairly.

What the Act covers in plain terms

Think of the Competition Act as a referee that watches for two big things in advertising: false statements and misleading impressions. In the Ontario real estate context, that means:

• False or misleading representations: If an ad says a home has “new hardwood floors,” but the floors are actually worn or only partly upgraded, that’s a misrepresentation. If a listing proclaims “completely renovated kitchen” without disclosing a partial renovation or incomplete work, that’s the kind of misstep the Act frowns upon.

• Deceptive marketing practices: This covers tactics that mislead by omission or by implication. For example, implying you have exclusive rights to an area’s best deals when you don’t, or suggesting a price is firm when you know there’s room to negotiate. It also covers claims about availability, comparable savings, or mortgage terms that cannot be substantiated.

• Bait advertising: A classic trap is advertising “limited-time offers” or “hot properties” to lure buyers in, only to push them toward a different product or a higher price when they show up. The Act targets this kind of tactic, too.

• Endorsements and testimonials: If a testimonial claims a property sold in a certain timeframe or at an exact price, it should reflect genuine, verifiable experiences. Misleading testimonials fall under deceptive advertising as well.

In short, the goal is simple: ads should reflect reality, not crafted fantasies. When a claim could mislead a consumer about a property, a deal, or a financing option, it’s a red flag under the Act.

Why this matters for Ontario real estate pros

Real estate is a service, and ads are how that service is introduced. Ontario professionals—agents, brokerages, and their marketing teams—rely on clear, accurate messaging to attract clients and close deals. When ads are truthful, buyers feel confident, sellers feel fairly treated, and the market functions smoothly. Misleading ads don’t just annoy people; they can trigger penalties, investigations, and reputational damage that lingers long after a property has changed hands.

Beyond the federal rulebook, Ontario has its own ecosystem of oversight. The provincial regulation framework—tied to the responsibilities of real estate boards, the Real Estate Council of Ontario (RECO), and industry codes—works in concert with federal laws to foster ethical advertising. RECO, for instance, emphasizes honesty, fairness, and transparency in all communications about properties. This means a well-meaning agent should not only comply with the letter of the Competition Act but also align with provincial expectations for professional conduct.

How to stay on the right side of the rules

Staying compliant isn’t about fear; it’s about clarity and good business sense. Here are practical steps you can take, whether you’re drafting a listing, creating social posts, or designing an open-house flyer:

• Verify every material claim: If you say a property has “granite countertops” or a “new roof,” have the documentation or inspection notes to back it up. When in doubt, phrase it carefully. If you’re unsure whether a claim can be substantiated, omit it or add a clear qualifier.

• Be precise with timing and offers: If you advertise a “limited-time price,” specify the exact window or tie it to a concrete condition (for example, “price valid until MM/DD”). Avoid implying a sale is closed or guaranteed by the end of a weekend if that’s not the plan.

• Use approved formats and disclosures: Rely on standard listing formats and disclosures that your brokerage or board endorses. These are designed to minimize ambiguity and prevent misleading omissions.

• Moderation in imagery: Photos are powerful. Do not mislead with images that exaggerate space, features, or condition. If staging has altered a room, consider labeling it as staged or using photo disclaimers where appropriate.

• Testimonials with integrity: If you feature client stories, ensure they reflect real experiences, and avoid implying outcomes you cannot guarantee. Always have permission and be transparent about the context.

• Disclose limitations and caveats: If certain features depend on future improvements, neighborhood conditions, or financing approvals, say so. Clarity beats cleverness every time.

• Document your process: Save notes on how you verified claims, where information came from, and when you updated it. This helps during reviews or inquiries and protects you if questions arise later.

A quick checklist you can keep handy

• Are all factual statements verifiable (price, features, conditions)?

• Do any claims rely on third-party projections or estimates that could change?

• Are there disclaimers where needed, especially for financing or availability?

• Do testimonials and endorsements reflect real experiences and have consent?

• Is every image accurately labeled and representative of the current listing?

• Is there a straightforward path for a buyer to obtain more details or verification?

A few real-world analogies to keep things relatable

Advertising is a bridge between what’s real and what people believe. If that bridge is shaky, you’ll hear from customers quickly. It’s like promising a sunrise and delivering clouds; the disappointment doesn’t vanish with a smiling brochure. Or think of it as a menu at a favorite cafe: if the dish lists truffle oil, you should taste it. If there’s no truffle oil, your credibility—and the diner’s trust—takes a hit. The Competition Act isn’t about policing every word; it’s about ensuring the promises behind the words are genuine.

Where to look for guidance

• Competition Bureau resources: They outline why false or misleading advertising matters and how it affects consumer choice and market health. Even small, local campaigns can touch those rules, so it helps to check in from time to time.

• Ontario-specific regulations and codes: The Real Estate Council of Ontario (RECO) and your brokerage’s marketing guidelines are there to keep daily practice aligned with professional ethics.

• Industry associations: Boards or associations often provide sample disclosures, templates, and best-practice guidance that reflect both federal and provincial expectations.

• Case references: When you hear about a real-world enforcement action, use it as a learning moment. What went wrong? How could the ad have been written differently? It’s a practical way to stay sharp.

A few quick reflections for today

Advertising in real estate isn’t about clever language alone; it’s about truthful storytelling. You want your listings to stand out, yes, but not at the expense of trust. When buyers feel confident they’re getting accurate information, they move more quickly, and that helps everyone—agents, sellers, and communities—make smarter choices.

If you’re building a marketing plan, start with honesty as your baseline. Then layer in compelling visuals, localized insights about neighborhoods, and transparent disclosures. The act of being forthright may constrain a few bold claims, but it also clears the path to stronger relationships and sustainable success.

A closing thought, with a touch of practical optimism

Ontario’s real estate market thrives on information that’s reliable and easy to follow. The Competition Act isn’t about stifling ambition—it’s about preserving a level playing field where good listings rise on merit, not on misdirection. For professionals, that means regularly checking the facts, keeping your marketing materials up to date, and using the tools and guidelines your boards and provincial bodies provide. For buyers and sellers, it means fewer surprises and more confidence when you step into a deal.

If you’re curious about how to translate these principles into everyday marketing, start with a simple audit: review a recent ad, ask yourself what claims would stand up to scrutiny, and revise anything that feels gray or unsubstantiated. The goal isn’t to be perfect—no one’s perfect—but to be consistently honest, fair, and clear. And that, in turn, makes the market stronger for everyone in Ontario.

In the end, the law isn’t just a set of rules; it’s a shared promise. A promise that when a listing says what it means, buyers can rely on it, sellers can compete on real value, and the market remains vibrant and trustworthy. That’s the kind of environment where good professionals thrive—and where homes find the right owners at the right time.