Home Buyers Organization Demands Strict Guidelines for Real Estate Advertising
A nationwide home buyers association has urged the consumer affairs department to implement stringent guidelines for real estate advertising to protect consumer interests. The organization highlights the prevalence of misleading ads and the inadequacy of
Real EstateMisleading AdsHome BuyersConsumer AffairsMahareraReal Estate NewsDec 30, 2024
The FPCE’s plea comes in the wake of a recent report by the Advertising Standards Council of India (ASCI) which found that a significant proportion of real estate advertisements are misleading.
According to the FPCE, around 34% of the advertisements analyzed by ASCI between April and September this year in Maharashtra’s real estate sector were found to be in direct violation of the law.
The FPCE, in its letter to the department, has also highlighted the inadequacy of penalties levied by Maharashtra RERA, which averages a mere Rs 14,000-15,000 per violation.
The ASCI, in February, signed an agreement with MahaRERA to screen and address misleading advertisements in the real estate sector.
ASCI reviewed a total of 2,115 advertisements and found 1,027 of them to be misleading, which is 48.6% of the total.
Out of these, 59% of the cases saw prompt compliance, with advertisers either modifying or withdrawing their advertisements.
The ASCI also checked for compliance with mandatory disclosure norms, such as the presence of registration numbers, QR codes, and other essential information.
Despite this, the FPCE believes that the current screening parameters are too limited and that a consumer-centric approach would reveal that 100% of the advertisements are misleading.
The FPCE has flagged the issue of meagre penalties, stating that the average fine of Rs 14,000-15,000 is unlikely to deter real estate developers from violating the law.
MahaRERA has levied a total penalty of Rs 88.9 lakh on 628 non-compliant advertisements, but the FPCE argues that this is insufficient to uphold the integrity of the market.
The FPCE’s call for targeted guidelines aims to protect homebuyers from misleading advertisements and ensure that real estate developers adhere to transparent practices.
The organization believes that stricter penalties and more comprehensive screening criteria are necessary to achieve this goal.
Frequently Asked Questions
What is the Forum for People’s Collective Efforts (FPCE)?
The Forum for People’s Collective Efforts (FPCE) is a pan-India home buyers organization that advocates for the rights and interests of homebuyers, particularly in the real estate sector.
What did the ASCI report reveal about real estate advertisements in Maharashtra?
The ASCI report revealed that around 34% of the advertisements analyzed from Maharashtra’s real estate sector between April and September this year were found to be in direct violation of the law.
What is the current average penalty for misleading advertisements by Maharashtra RERA?
The current average penalty for misleading advertisements by Maharashtra RERA is a meagre Rs 14,000-15,000, which is considered inadequate by the FPCE.
Why does the FPCE believe that 100% of the advertisements are misleading?
The FPCE believes that if the advertisements were screened from a consumer-centric perspective, rather than the limited parameters set by MahaRERA, it would reveal that 100% of the advertisements are misleading.
What are the key recommendations of the FPCE to the consumer affairs department?
The key recommendations of the FPCE include the implementation of targeted guidelines for real estate advertising, stricter penalties for violations, and more comprehensive screening criteria to protect consumer interests.
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