I have received several phone calls over the past few weeks from agents who believe that REALTORS^® in their area are violating Article 12 of the Code of Ethics by using deceptive metatags and phrases on their website.

Let's review a case from the NAR Code of Ethics Manual.

Case #12-17: REALTOR^® X, a principal broker in the firm XYZ, was technologically savvy and constantly looking for ways to use the Internet to promote his firm and drive additional traffic to his website.

Being an early adapter to the Internet, he had registered, but not used, domain names that incorporated or played on the names of many of his competitors and their firms, including ABC, REALTORS^®.

REALTOR^® X and his information technology staff concluded that one way to drive traffic to the firm's website would be to take advantage of the search engines commonly used by potential buyers and sellers. They realized that when potential buyers or sellers searched on key words like "real estate" or "REALTORS" or on similar words, lists of domain names would appear, and that when consumers searched the Internet for ABC, REALTORS^®, one of the domain names that might appear would be REALTOR^® X's domain name, abcrealtors.com.

REALTOR^® X decided to take advantage of the domain names that he had previously registered, and pointed several that used, in various ways, the names of his competitors, including "abcrealtors.com" to his site.

REALTOR^® X was charged with a violation of Article 12 of the Code of Ethics because he presented a false picture to potential buyers and sellers and others on the Internet.

At the hearing, REALTOR^® X defended himself indicating that, in his opinion, use of a domain name was not advertising or a "representation" to the public but simply a convenient way for Internet users to find relevant websites. Moreover, "When web surfers reach my home page, there is no question that it is my site since I clearly show XYZ's name and our status as REALTORS^®," he continued.

The Hearing Panel disagreed with REALTOR^® X's justification, indicating that while his use of a domain name that employed another firm's name might not be precluded by law or regulation, it did not comply with the Code's higher duty to present a "true picture," and therefore was found to be in violation of Article 12.

This particular case did not address metatags, but Article 12, Standard of Practice 12-10 also prohibits REALTORS^® from using metatags, keywords or other devices / methods to direct, drive, or divert Internet traffic, or to otherwise mislead consumers.

Technology is having an impact on every phase of the real estate industry. We are all looking for better ways to lead consumers to find us on the Internet. That's good business. But we must be extremely careful that in our creative techniques, we continue to abide by the Code of Ethics. If you have questions, please don't hesitate to call the Board. They'll be happy to help.

Hope these insights help. See you next week!

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