Deceptive Acts or Practices

The Consumer Protection Section of the Attorney General's Office receives thousands of complaints each year against individuals and businesses in every conceivable walk of life. Because there are so many real estate brokers and salesmen who are active in North Carolina, it is inevitable that our office will receive complaints about some of you. Some of these complaints may be justified while others are not. However, in every instance where we believe a consumer has stated a prima facie case, we will contact you in order to learn what information you may have on the subject so that we, are better able to determine the merits of the complaint before going further. By writing you, we do not imply that we agree with the consumer, only that we need to hear your point of view.

North Carolina low provides that unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce are unlawful and are subject to a civil injunction by the Attorney General. So that you will have a better understanding of how this low applies, the following is a brief, and by no means conclusive, checklist you should keep in mind.

(1) Intent to deceive, or the seller's good faith or honest belief is not relevant or material to a determination of illegality.

(2) Opinions which are misleading or deceptive are unlawful.

(3) Any false inducement is a violation if it is likely to mislead a substantial segment of the purchasing public, or that portion of the public to whom the representations is directed.

(4) Failure to disclose a material fact is unlawful.

(5) Advertisements or representations which have a tendency or capacity to mislead are unlawful.

(6) Misrepresenting the' nature of or the extent of a guarantee or warranty is unlawful.

(7) Any person who engages in a transaction which in whole or in part is in violation of an already declared statute may hove in fact engaged in an unfair or deceptive act or practice.

Finally, in judging the likelihood that an act or practice is likely to deceive, the measure is whether it is likely to deceive the unlearned and gullible. In determining this, courts generally are concerned with the impression a statement or representation is likely to create upon prospective purchasers which arises not only from the sum total of what is said but also of all that is reasonably implied.

It is our hope that this information will not restrict but rather assist you in your work as a real estate broker or salesman. Should you ever have any questions, please feel free to call on us. Our address is Box 629, Raleigh, N. C. 27602, and our toll free telephone number is 1-800662-7925.