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Coming soon: New Department of State (DOS) Regulations on IDX Feeds and Advertising

Posted by GCAR on March 24, 2020
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A new proposed DOS regulation impacting IDX feeds and licensees who pay a third-party to advertise where it will appear on the same webpage as another broker’s exclusive listing.

This regulation is still in the public comment period but may be moving forward very soon. Licensees will have a 6-month grace period to get their IDX feeds and third-party paid advertisements in compliance.

For questions, members should contact the NYSAR legal hotline at 518-436-9727, 9a-4p, M-F.

The gist of the regulation says:

IDX Feeds
Brokers and their associated licensees who utilize and IDX feed must clearly and conspicuously disclose the name of the exclusive listing broker immediately after one of the following phrases (no other wording will be in compliance):

  • “Listing Provided by (Insert the name of the exclusive listing broker)”
  • “Listing by (Insert the name of the exclusive listing broker)”
  • “Listing Broker Contact (Insert the name of the exclusive listing broker)”
  • “Listing of (Insert the name of the exclusive listing broker)”
  • “Listing Provided Courtesy of (Insert the name of the exclusive listing broker)”
  • “Listing Courtesy of (Insert the name of the exclusive listing broker)”
  • “Listing Agent Contact (Insert the name of the exclusive listing broker)”

“Clearly and Conspicuously” means “above the fold” of the webpage. The consumer should not have to scroll down the page to find the identity of the listing broker. The placement of the required language above should at or near the top of the page. This regulation applies to single page listings and to displays of multiple properties or property search results.

Paid Advertisements
Any broker or their associated licensees “who pays a third-party for advertising involving a property that is subject to an exclusive listing agreement of another broker must….include in any advertisement that provides the advertising broker’s name words to disclose that the advertisement is a paid advertisement, using at the minimum the word “advertisement” immediately following the real estate broker, associate real estate broker or real estate salesperson’s name.

DOS has indicated licensees who pay a third-party for advertising are responsible for the manner in which their advertisement is displayed. This means that third-party advertisements must comply with the advertising regulations or the licensee will be liable for noncompliance.  The third-party advertiser is not subject to discipline by DOS, only the licensee who placed the advertisement.

Steps to take now:

  1. Have a discussion with your IDX provider about ensuring all listings use one of the required wording above
  2. Compile a list of all advertising that you pay for and communicate with them about the new DOS regulations and their role in complying. (If they choose not to, they will not get your advertising money)
  3. When researching new vendors for IDX or Advertising, question them on their compliance with the NYS DOS regulation.

Look for more information once the regulation has passed from both NYSAR and Global MLS.