The Missouri Merchandising Practices Act
Missouri consumers are protected against deceptive practices by the Merchandising Practices Act, which reaches real estate conduct. This chapter explains how the Act applies to brokers and their firms.
Scope of the Act
The Missouri Merchandising Practices Act prohibits deception, fraud, false pretense, misrepresentation, unfair practice, and the concealment or omission of a material fact in connection with the sale or advertisement of merchandise, which includes real estate. It is enforced by the Attorney General and gives consumers a private right of action, separate from the real estate license law.
Application to Real Estate Practice
A broker or salesperson who misrepresents a property's condition, conceals a known material defect, or uses deceptive advertising can face liability under the Merchandising Practices Act in addition to Commission discipline. Because the Act allows consumers to recover damages and attorney's fees, brokers must ensure their firms advertise truthfully and disclose material facts.
Broker Risk Management
A supervising broker should train affiliated licensees to avoid deceptive statements, verify claims made in advertising, and document disclosures. Compliance with both the license law and the Merchandising Practices Act reduces the firm's exposure to consumer lawsuits and regulatory action. Understanding this dual layer of consumer protection is part of a Missouri broker's responsibility.