Homebuyers' Group Urges Government to Tackle Misleading Real Estate Ads
The Forum for People’s Collective Efforts (FPCE) has raised concerns about misleading real estate advertisements, calling for stricter guidelines and penalties to protect homebuyers in Maharashtra and beyond.
Real EstateMisleading AdsConsumer ProtectionMaharashtraFpceReal Estate MaharashtraDec 31, 2024
According to a recent report, the organization is urging for targeted guidelines and stricter penalties to protect homebuyers and hold developers accountable for false advertising.
Alarming Findings on Misleading Ads
FPCE's plea is based on a report from the Advertising Standards Council of India (ASCI), which found that 34% of real estate advertisements analyzed in Maharashtra between April and September violated existing regulations.
While this data is specific to Maharashtra, FPCE believes the issue is widespread across the country and demands immediate regulatory intervention under the Consumer Protection Act, 2019.
Misleading ads, according to FPCE, are often the first step in trapping homebuyers and exploiting their savings.
Insufficient Penalties Encourage Non-Compliance
Despite ASCI flagging 628 non-compliant advertisements to the Maharashtra Real Estate Regulatory Authority (MahaRERA), the penalties imposed averaged just Rs 14,000–15,000 per developer.
FPCE argues that such negligible fines fail to deter developers and effectively incentivize them to continue the practice.
Frequently Asked Questions
What is the main concern raised by FPCE regarding real estate advertisements?
FPCE is concerned about the prevalence of misleading advertisements in the real estate sector, which can trap homebuyers and exploit their savings.
What are the findings of the ASCI report in Maharashtra?
ASCI's report found that 34% of real estate advertisements analyzed in Maharashtra between April and September violated existing regulations.
What is the average penalty imposed for non-compliant advertisements by MahaRERA?
The average penalty imposed by MahaRERA for non-compliant advertisements is Rs 14,000–15,000 per developer.
What are the key recommendations made by FPCE to the Ministry of Consumer Affairs?
FPCE recommends allowing homebuyers to withdraw from projects with interest, mandating substantial compensation for misrepresentation, and expanding advertisement screening criteria.
Why is national-scale action needed according to FPCE?
FPCE believes that the issue of misleading advertisements is widespread across the country and requires national-scale action to safeguard homebuyers' interests and ensure accountability in the sector.
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