FPCE Demands Stricter Guidelines for Misleading Real Estate Advertisements
FPCE calls for stricter penalties and guidelines to curb misleading real estate ads, urging nationwide reforms to protect homebuyers under the Consumer Protection Act
sheetal
The Forum for People’s Collective Efforts (FPCE), a prominent national homebuyers’ advocacy group, has called on the Ministry of Consumer Affairs to address misleading advertisements in the real estate sector. The group emphasized the urgent need for specific guidelines and stringent penalties to protect homebuyers from deceptive practices, as reported by the Economic Times.
The FPCE highlighted findings from a report by the Advertising Standards Council of India (ASCI), which revealed that 34% of real estate ads in Maharashtra from April to September violated advertising norms. While the data pertains to Maharashtra, the group stated that misleading advertisements are a nationwide concern, requiring immediate action under the Consumer Protection Act, 2019. These deceptive ads, FPCE noted, often serve as the initial step in exploiting homebuyers and misappropriating their life savings.
Criticizing the current penalties imposed by the Maharashtra Real Estate Regulatory Authority (MahaRERA), FPCE pointed out that fines for non-compliant advertisements averaged only Rs 14,000–15,000. With 628 misleading ads identified, FPCE argued that such minimal penalties fail to deter developers, allowing unethical practices to persist without meaningful consequences.
The group has proposed several measures to the Ministry, including:
- Allowing homebuyers misled by false advertisements to exit projects with interest refunds.
- Imposing significant compensation for misrepresentation.
- Expanding advertisement review standards to identify misleading practices from a consumer perspective.
FPCE further criticized the lack of mechanisms for consumer restitution, which leaves buyers unable to recover their investments or claim compensation. While acknowledging progress made through ASCI’s partnership with MahaRERA earlier this year, the organization stressed the need for a nationwide approach to bolster consumer protection, ensure accountability for developers, and safeguard the interests of homebuyers.
