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Yes, the BCFSA Checks Your Social Media For False and Misleading Claims.
What YOU can learn from the case of Mehrbod (Re), 2024 BCSRE 93
Eli Zbar
April 30, 2025
Posting exaggerated claims of success on social media is a primary marketing strategy in many industries. However, not all marketing is subject to regulatory scrutiny like real estate agent’s marketing in British Columbia.
This newsletter highlights a recent BCFSA decision to reveal important lessons and reminders for all real estate agents - don't ignore the BCFSA advertising rules.
Recently Issued BCFSA Administrative Penalties
Recently, the BC Financial Services Authority (BCFSA) issued administrative penalties against several real estate agents based on some obvious mismatches between their social media claims, and reality. The BCFSA is sending a clear message: real estate agents can face penalties for misleading social media content, gaps in information, and outdated posts.
The BCFSA has little difficulty fact checking claims made by real estate agents. When a "life coach" makes claims of financial success, there's usually no way to fact check. But, most every real estate transaction shares information with the LTSA, BC Assessment, and the dozens of real estate data aggregators, in a public and permanent fashion.
The Case of Mehrbod (Re), 2024 BCSRE 93
The decision in Mehrbod (Re), 2024 BCSRE 93 highlights some particularly egregious "false or misleading" social media activity. In dismissing Dr. Mehrbod's appeal of his $6,000 administrative penalty, the BCFSA provides a veritable laundry list of contraventions.
It's illuminating due to the exactitude and depth of their findings; they compared Dr. Mehrbod's social media claims to the actual figures of at least 8 transactions over at least 3 years, discovering discrepancies from as little as $1,000 to over $500,000. Paragraphs 107–108 summarize the difference between an approximation and a misrepresentation:
[107] ...Even taking the original listing prices, which Dr. Mehrbod does, and comparing them to the final sale prices each calculation is incorrect and therefore false. I do not accept that these were the result of reasonable rounding or shorthand....
[108] Approximations may be acceptable in certain cases, but only where the publication notes the numbers are approximate and the approximations are reasonable.
The BCFSA also found general claims which turned out to be false or misleading when Dr. Mehrbod promoted himself on Instagram as part of a real estate "team", but no registered team existed and when he described himself as a "Top 1% REALTOR in Van" with only an email offering him such a title as evidence. At paragraph 82, the decision finds:
"Again, Dr. Mehrbod has not demonstrated any degree of due diligence with regard to his compliance with the requirements of section 41 of the Rules. He has not demonstrated he took any steps, prior to being notified by BCFSA of his obligations, to ensure his publication of his awards complied with the Rules or to understand if the representations he made were misleading."
The decision wraps up with a succinct cautionary note at paragraph 138:
"This is the benefit and danger of social media posts: they effectively exist perpetually. This is a benefit to licensees because they can create a significant and growing online presence that increases engagement and allows them to reach a potentially growing audience. The danger is that it requires an ongoing curation and monitoring of a possibly growing volume of material."
Real Estate Advertising: Tips to Stay Safe
Don't end up like Dr. Mehrbod - finding out the rules from the BCFSA at a hearing. Take the time to learn, and relearn the rules, now.
Every real estate agent must ensure they understand sections 40 and 41 of the Real Estate Services Rules, BC Reg 209/2021. Importantly, these sections do not require intent to mislead. You can face penalties for content you reasonably ought to have known was false or misleading.
You need not directly make the posts, as the definition of "publish" includes causing, or permitting, real estate advertising to be displayed. The broad definition of "publish" can hold you responsible for old accounts, bios, or websites linked to your name, regardless of who manages them. A reminder that "real estate advertising" means any form of identification, promotion, solicitation or representation, including a sign or other notice, relating to real estate.
Real estate agents must take responsibility for everything published under their name, whether they wrote it, approved it, even if they forgot it existed.
Regularly audit your online presence for inactive or legacy platforms.
Avoid publishing anything false or misleading, even by omission. This includes claims about awards, rankings, team affiliations, or price results unless you clearly explain or support them. Support claims with dates, sources, data, qualification criteria for awards as appropriate.
Use the full legal name of your personal real estate corporation (PREC). Do not abbreviate it. Here's our previous newsletter all about how to properly use your PREC name: PREC: 4 letters between you and personal liability.
Use team language carefully. Don’t refer to yourself as a team if BCFSA has not registered you as one.
Review the BCFSA advertising guidelines
Use the BCFSA advertising checklist
When in doubt — ask a lawyer! We have lawyers with specific expertise in BCFSA regulatory defence.
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Sincerely, Eli Zbar Lawyer |  |
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