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Real Estate Ethics

Internet Ethics Needed For On-line Marketing

by Jim Crawford

The advent of the Internet has helped many of us advance our careers. It has broadened our marketing exposure beyond local neighborhoods, Sunday classifieds, or sales magazines. We are truly global. Each day our Websites touch every corner of the globe, 24 hours a day, 7 days a week. So it is critical how we conduct ourselves as licensed professionals, as the shadow cast by our Internet or e-commerce marketing magnifies our public image even more so. The world is watching, it's time we address our behavior, by paying more attention and reviewing the information we place on our Websites.

Referring to business and commerce, Mahatma Ghandi once stated there are "Seven things that will destroy us," of those, I believe three stand out and apply to our profession: "Wealth without work, Knowledge without character, and Business without ethics..."

In our fervor to create profit from our Websites, as real estate professionals and Realtors we must reinforce our high professional standards for the viewing public on the Internet. As real estate practitioners, the main mission in this industry is to earn a good living, and to be profitable. It is always great making money, but at what cost? We cannot be deceptive, misleading to the general public

Each time we take out an advertisement, do a mass mailing, or create a marketing piece, we should be complying with our individual state license laws, federal laws, and if we are members of the National Association of Realtors (NAR), we should also comply with the NAR Code of Ethics. This may mean we have to identify the company that we are currently licensed with, the address of that office, and contact information, as prescribed by state license law. Why? Because in doing so, we serve, and protect the best interest of the public. So why are we not applying the same standards of compliance to our Internet marketing? Have we excluded ethical standards on the Internet?

It always amazes me when I surf the net for ideas that I come across an agent or company Website that doesn't identify: company name, address, the state in which they are licensed if any, nor the name of the agent or broker that owns the Website! As far as I am concerned, this is wrong and unprofessional. It may be viewed as neglect, lack of integrity, or even a violation of law for the agent, and broker in their respective licensed jurisdiction. I guess it depends on who finds the site first.

Other troubling items I've found include: bootlegged MLS databases, listings that are posted as active, but sold several years ago. This may be viewed as a deceptive trade practice, or fraud. I've also found agents or brokers using in their hidden meta tags the names of their competitors (which is a copyright, trademark, and servicemark infringement.) This is not ethical, certainly not professional, and some of these items may call for prosecution of the offenders. Behavior such as the ones I just mentioned, are just a few of the Internet issues that are casting a poor reflection on our industry as a whole. We need to fix this ASAP.

In the past, if we had a question, we sought the advice of our brokers, local MLS, or board of Realtors. These sources never let us down, and were always there to shed light on our day-to-day dilemmas. However, I believe we could all agree there are few brokers, or MLS boards that can advise us on how to conduct business on the Internet. It seems with regards to the Internet, no one has the answers. Those we look to are unable to provide the answers we need, because they do not know the applications or consequential behavior of actions as it applies to the Internet. So where do we turn, as professionals to find out what is right and wrong, what we can, and cannot do on the Internet?

Many Realtors rely on Webmasters for advice, but that may be a big mistake. Do Webmasters know that as licensed real estate agents, and brokers, we must comply with real estate state license law, RESPA, or adhere to the NAR Code of Ethics? After all, they are not licensed agents, nor members of the NAR. They are technicians; they set up the architecture, and structure that makes a Web strategy work, but we as Realtors are responsible for the content. So if the answers they provide are wrong does that excuse us as licensed agents, or as members of the NAR for our omissions or mistakes? The answer is most probably not! Now we may be in jeopardy of license law violation, copyright, trademarks or servicemark infringement, and liable for it. Ignorance under the law is not an excuse, it may be deemed a deliberate misuse, and may be construed as fraud, or deceptive trade practice by the authorities.

In August of last year, I along with several other high-technology, agents was invited by Richard Mendenhall, then president of the National Association of Realtors, to NAR Headquarters in Chicago to discuss some pressing Internet issues that affect the NAR as a whole. We met for several days with the executive board of NAR. It was a very productive brainstorming session. The reason we were invited was simple, we were all familiar with Web design, were successful Realtors on the Internet, and familiar with current technologies. We met as a group, and discussed a broad array of pressing topics, and concerns. It was an enlightening meeting.

At this meeting I recommended the NAR Code of Ethics and Standard of Practice should broaden its view by embracing the reality of the Internet / e-commerce, and anticipate its evolution and consequences. Since our current NAR Code of Ethics does not specifically address any of the emerging issues at hand, we must do so. Out standards of ethics must be broad enough to include current Internet issues, and allow for other issues that may arise. Here are a few ideas that I submitted to for review. Please keep in mind this is just a draft, because there are many issues that need to be discussed in forum or committee for a consensus.

Basically, there are two major areas of concern: legal, and ethical. The following encompass just a few of the issues that need to be embraced:

1. The current NAR Code of Ethics should expand its coverage and ethics as they pertain to on-line exposure, advertising, marketing efforts, e-commerce and all electronic transactions.

    

2. Websites must identify licensee affiliation compliance our main page (or as directed to comply with state, or local license laws for real estate licensees.)

    

3. We may not illicitly use the names of other firms, agents or brokerage, in which we are not licensed by governing body to use, to mislead or redirect the public either overtly or covertly, by using: keywords, hidden text, malicious scripts, meta tags, or descriptions, java scripts or any other means that enhances our own Internet / e-commerce position by purposeful manipulation of the viewing public or potential customers or clients and against their knowledge.

    

4. Real estate professionals shall not use as search engine keywords, hidden text, tagging or meta tags for Internet web sites, using the Copyright names or Trade Marks, or Service Marks of any firm, franchise, board or organization other than those with which the Realtor is affiliated or otherwise authorized to use.

    

5. Displayed Data: As Realtors and licensed professionals, we must comply with all applicable state laws governing licensing, disclosure, and local brokerage or / MLS agreements in the displaying of these listings. Listing data or information displayed should be as current as possible.

    

6. As members of the NAR, we should not use illicit databases of listings that are not our own, or used without consent, knowledge or agreement of the rightful owners of that data. (It is deceptive when the data of others appears as our own.)

    

7. E-commerce for on-line transactions: We will guard the information given by clients and customers as private and confidential.

    

8. Aggregation of data and information of the viewing public, clients or customers must be done with full disclosure allowing the viewer the option to proceed, or the option to withdraw or opt-out at anytime from our follow-up contact. Data must not be gathered by means of a hidden script without the knowledge or consent of the viewer /client /customer.

    

9. Data gathered from our Internet / e-commerce sites must not be sold, traded to a third party without the consent or knowledge of the viewer /client /customer. Personal data must never be gathered from the viewer / or client's server, pc or terminal without their knowledge.

All of the above, and many more issues that were not raised here, need to be addressed by NAR. Our image will be at stake if we do not. The REALTORS® Code of Ethics needs to address e-commerce, Internet information-gathering, Internet advertising and other emerging technical issues. Our behavior on the Internet cannot be hidden from the viewing public. As more and more of our real estate business comes from the Internet, we must develop the necessary ethical precepts and weave them into the Code in the form of new and augmented Standards of Practice.

Published: May 31, 2002