The Bureau has increased focus on real estate, especially around commission practices and innovative/emerging business models. There is now a specific group devoted to competition issues in real estate.
In a recent session led by Paul Feuer, Senior Competition Counsel at CREA, CREB® members got a crash course in why competition law matters now more than ever—and how to protect yourself and your business from serious consequences.
Here’s what you need to know:
Why Competition Law is a Big Deal in Real Estate
Buying or selling a home is often the biggest transaction a Canadian consumer will ever make. That’s why the Competition Bureau is keeping a close eye on the real estate industry. In fact, they’ve ramped up enforcement and even created a dedicated team focused on real estate practices.
The Competition Act is federal law that applies to every REALTOR® and real estate business in Canada. It exists to promote fair business practices and protect consumers. The Act contains two types of provisions: (1) criminal offences, which are dealt with by the criminal courts; and (2) civil reviewable matters, for types of conduct which are reviewable by a quasi-judicial body called the Competition Tribunal. Violating the Act—intentionally or not—can lead to:
- Fines of up to $25 million for civil cases
- Imprisonment for criminal offences
- Court orders and investigations
- Private lawsuits or class actions
- Major reputation damage
What to Watch Out For
Competition issues often arise where you least expect them—team meetings, online forums, or industry events. Here are some of the most common red flags Feuer suggested could be considered “hardcore cartel” issues, and considered criminal offenses:
1. Price Fixing and Commission Discussions
One of the most serious offences is agreeing with competitors to fix or standardize commission rates, fees, or splits. Even suggesting something like, “Let’s all stop offering discounts,” can be seen as price fixing.
The golden rule: Always set your own pricing. If another agent brings it up, object loudly and clearly—and if it continues, walk away. This is called a noisy withdrawal, and it shows you’re not part of the conversation.
2. Market Division and Boycotts
Don’t divide clients or territories with other REALTORS®. And don’t avoid showing listings just because a competitor offers a lower commission. That’s called steering, and it’s a major legal and ethical issue.
Refusing to work with a competitor, or encouraging others to do the same, can be considered a group boycott—another serious breach of the Act.
3. Innovation Suppression
After Competition Bureau intervention in 2010, CREA agreed to allow “mere postings” to ensure we were not limiting service models and pricing. Innovation is now protected—and stifling it can raise legal red flags.
4. Misleading Advertising
The Competition Act prohibits ads that are false or misleading in a material way. It’s not just about what your ad literally says—it's about the overall impression it gives.
Vague claims like “Calgary’s #1 Agent” may be allowed as puffery, but performance-based claims like “Sold the most homes in 2024” must be backed by clear, verifiable data. That means you need proof—time period, region, source of data, and more—before you make the claim.
Disclaimers? They need to be clearly visible and close to the claim—not buried in fine print.
5. Hidden Fees and Drop Pricing
Avoid advertising low prices that don’t include additional required fees. If the advertised price can’t be attained without extra costs, it may violate the law.
Final Thoughts: Compliance is Smart Business
Following competition law isn’t just about avoiding penalties—it’s about building a more transparent, trustworthy industry. With the Competition Bureau watching closely, REALTORS® who understand the rules will be better equipped to serve their clients, stand out in the marketplace, and protect their reputation.
There’s much more to competition law than a CREB®Talk article can cover. Check out CREA’s extensive library of competition resources on their Competition Page or, if you have specific questions, consult a lawyer who is knowledgeable in competition law.
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