Realty Times May 12, 2004

A Proposal For The NAR: Internet Standards
by Jim Crawford

As issues surrounding the Internet heat up, more questions are being raised by NAR members as to the proper and fair use their data online. I am proposing Internet standards to be considered by the NAR.

The issues that need to be addressed in the NAR Code of Ethics are:

1. Legal: Adherence to all Federal, State and local license laws that govern real estate.

a. Fraud, theft, misrepresentation, Fair Housing compliance, Copyright Infringement, Trademark infringement, Cyber Piracy, RESPA etc…

2. Ethical: NAR Code of Ethics

a. Public image, unfair advantage, Fair Housing, Copyright Infringement, public perception of our conduct, REALTORS public image, and interaction, and good will with all REALTOR members.

NAR INTERNET /E-COMMERCE ISSUES

Internet / E-Commerce Ethics

This National Association of REALTORS (NAR) Internet / E-Commerce Ethics should be subordinate to, and conform to the current (NAR) REALTOR Code of Ethics in scope, spirit and intent of that NAR Code, and expands the coverage of those ethics to member REALTORS exposure, advertising, marketing efforts, e-commerce and all electronic transactions, in all forms of existing Internet / E-commerce, and emerging Internet and e-commerce media.

The Internet / E-Commerce standards that are to be set forth in this REALTORS (NAR) Code Ethics should be designed to maintain and enhance the high standards of professional and ethical conduct we espouse as members subscribing to the (NAR) REALTOR Code of Ethics. As members of the National Association of REALTORS (NAR), we embrace these values both for our public image and perception, and as a trusted source of professional conduct and service to our nation, state and local government and local communities in which we serve in a new emerging electronic age.

As members of the NAR, our corporate, and individual of Internet / E-Commerce sites will comply with the standards set forth in our NAR) REALTOR Code of Ethics, and comply with all federal, state, and local laws and standards that govern, Fair Housing, RESPA, licensure, disclosure, and comply to our local Multiple Listing Services (MLS) agreements.

As members of the NAR, our complying sites on our main page (or as directed to comply with state, or local license laws for real estate licensees) will display licensees: Broker of record and / or agent’s brokerage affiliation, full address of record of registered brokerage under state real estate license laws, contact information, a REALTOR logo and Fair Housing Logo.

ISSUES TO BE ADDRESSED

  1. Unfair Internet / E-Commerce Marketing

    As members of the NAR, REALTOR and our affiliate businesses, we may not use the name of our competitors in any derogatory terms, or use illicitly 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, meta tags, or descriptions, java scripts, redirect pages, or html. Thus enhancing our own Internet / e-commerce position by purposeful manipulation of the viewing public or potential customers or clients and against their knowledge. (This Article further expands (NAR) REALTOR Code of Ethics, Article 15)

    Explanation (REALTORS shall ensure a true presentation in all advertising) states:

    A Realtor shall not use as search engine keywords for his/her Internet web sites, the trade names or trade marks of any firm, franchise, board or organization other than those with which the Realtor is affiliated or otherwise authorized in writing to use.”

    This interpretation deals directly with the inappropriate use of a process called “meta-tagging” on Internet web sites. When a web site is set up, an invisible field of keywords is developed to increase the chances of a search engine returning that site when a user conducts a search. For instance, a real estate practitioner in New York may insert “New York real estate” as some of the keywords so that someone searching for those terms might bring up his or her site.

    The problem arises when keywords are inserted which not only have nothing to do with the site, but are actually misleading. A salesperson, for example, who is working for one franchise and puts the name of another franchise in his or her keyword field to lead surfers to their site is attempting to profit in an improper manner from someone else’s name or reputation. U.S. courts have already held this to be a trademark infringement. This practice is now specifically prohibited.

    A Realtor shall not use misleading ip addresses / urls or redirect scripts to mislead the public for his/her Internet web sites.

    Explanation a viewer may type in a website address believing he / she is going to view one website (example http://www.johnsmith.com and unbeknownst to him / her… actually be redirected to another website of a competitor http://www.johnjones.com ) This practice is fraudulent and unethical and may also violate copyright, trademark infringement, and cyber piracy.

  2. USE OF DISPLAYED DATA

    As members of the NAR, and conforming to the (NAR) REALTOR and conducting business or advertising via Internet / E-Commerce, members will comply with all applicable state laws governing advertising and disclosure, and local brokerage or / MLS agreements in the displaying of these listings, both rental and sales. These listings may be the REALTORS, brokers, or affiliated broker’s or by agreement under broker reciprocity, IDX. Within the control of the member’s control, listings data or information displayed will be as current as possible.

    1-1

    As members of the NAR, we will not use illicit databases of listings that are not our own, or used without consent or knowledge of the rightful owners of that data. This applies to downloaded data on listings from a MLS or other data source then publishing to our own sites, or by framed pages or links, that make this illicit use of data appear as our own.

    1-2

    As members of the NAR, we will guard the information given by clients and customers as private and confidential. This includes using secure servers (SSL encryption) for transmission of social security, financial terms, credit and other very personal and confidential information. Non- secure transmission of such private information without a secure platform, is deemed unethical because it exposes confidential and personal information and creates an unnecessary financial risk to our clients / customers.

    1-3

    As members of the NAR, aggregation of data and information of the viewing public, clients or customers must be dome 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. A collection of such data must be in an overt manner, and full knowledge of the viewer. Data must not be gathered by means of a hidden script without the knowledge or consent of the viewer /client /customer.

    1-4

    As members of the NAR, data must not be gathered by fraudulent means or from a Internet / e-commerce site that is not identified as a real estate related site, or gathering information by means of fraudulent surveys, cookies, or html, java or scripts that gather data.

    1-5

    As members of the NAR, collected 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.



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