Government Flags Misleading Real-Estate Digital Ads in Multiple States
The government has flagged misleading real-estate digital ads across multiple states, warning that builders are using government-style terminology to misrepresent private projects. According to recent reports, states and real estate regulators have been asked to act against deceptive advertising practices to protect homebuyers and improve disclosure compliance.
Key Developments
The Centre has directed state governments and Real Estate Regulatory Authorities (RERAs) to curb digital advertisements that make private housing projects appear similar to official government schemes.
The issue was discussed at a meeting of the Central Advisory Council (CAC) of RERA, where regulators raised concerns about undisclosed publishers and promoters bypassing mandatory disclosure norms.
States have been asked to submit compliance reports and address data mismatches across developer websites, online property portals, and official RERA records.
Regulators have also stressed that project advertisements must strictly match the location, approvals, and specifications submitted during RERA registration.
Industry & Expert Context
India’s real-estate advertising framework is governed by the Real Estate (Regulation and Development) Act, which mandates transparency in project promotion and disclosure.
Industry representatives note that misuse of “government-style terminology” creates confusion, particularly among first-time buyers who may assume official backing or guarantees.
According to sector experts, projects exempt from RERA registration must clearly state the exemption and its justification in all advertisements.
Digital marketing observers, including Digilogy, which tracks regulatory trends in real-estate advertising, note that enforcement is increasingly extending to digital platforms and intermediaries.
Penalties and Enforcement Gaps
Under Indian law, misleading real-estate advertisements can attract penalties of up to ₹50 lakh, with powers granted under the Consumer Protection Act to penalise promoters and ban endorsers.
However, homebuyer groups argue that actual penalties imposed remain too low. In some states, average fines reportedly range between ₹14,000 and ₹15,000 per violation.
The Homebuyers’ Protection Council of India has recommended allowing deceived buyers to exit projects with interest refunds, citing insufficient deterrence under current enforcement levels.
Why This Matters
For homebuyers, misleading digital ads can result in financial loss, delayed possession, or false assumptions about project legitimacy.
For regulators, unchecked advertising undermines the objectives of RERA, which was introduced to bring accountability and trust to the real-estate sector.
For developers and marketers, the government’s stance signals tighter scrutiny of digital campaigns, including liability for publishers and online platforms.
What Happens Next
State RERAs are expected to strengthen monitoring of online advertisements across websites, social media, and property portals.
Media outlets publishing non-compliant ads may face escalation to central regulatory bodies under existing laws.
Industry participants are likely to revisit ad creatives, disclosures, and verification processes to avoid penalties and reputational risk.
Final Takeaway
The government’s action against misleading real-estate digital ads highlights a firm push toward transparency and consumer protection. Clear disclosures, accurate representations, and regulatory compliance are becoming essential for sustainable property marketing.
Digilogy tracks these regulatory developments closely to understand how evolving rules impact real-estate digital advertising practices. For regular updates and insights, visit the Digilogy News page.
