Legal Thinking About Sham Advertisement Of Real Estate

As the development and improvement of China's socialist market economy, the rapid growth of real estate industry has attracted the public's broad attention. Real estate advertisements' huge influence on promoting and leading consumption is more and more obvious and important. Due to the huge influence, some real estate investors risk to post sham advertisements in order to maximize their profit, harming consumer rights. However, because of the lack of effective regulation on real estate sham advertisements, of powerful advertising administration system and of advertising industry's self discipline, China cannot efficiently protect its consumers from sham advertisements.Regarding the above mentioned problems, this paper demonstrates the definition of real estate sham advertisements, its legal nature and its causes, discusses the problems of China's current legal system of real estate regulation and advertising supervision, and analyzes the rationality of implementing punitive compensation to real estate sham advertisements. Based on these analyses and reference on western developed countries' experiences, this paper gives policy recommendations to Chinese government. For instance, China should clarify identification standards, and detail the Article 3 of "Interpretation of Application of Several Problems on Trying Disputed Cases Over Purchase and Sale Contracts for Merchandise Houses". To better protect consumers' rights, China should improve its related legal regulations, real estate advertising supervision and administration system, and encourages advertising industry's self discipline, providing a favorable legal environment to real estate industry and therefore realizing the real estate industry's healthy development.