If a client testimonial references compensation, what must the licensee disclose?

• A. Disclose any compensation or incentive; avoid implying an endorsement beyond the testimonial.
• B. Do not disclose compensation to avoid bias.
• C. Remove the testimonial if compensation is involved.
• D. Only publish testimonials that mention compensation.

Answer: (D)

When a testimonial mentions compensation, the important idea is transparency about potential bias. You must clearly disclose that the client received compensation or an incentive for the testimonial, and you should also clarify that the endorsement is from the client themselves and not an official endorsement of the broker beyond what the client states. This helps buyers understand that the testimonial could be influenced by payment and prevents readers from assuming the broker’s office fully endorses or guarantees the client’s experience.

Why this fits best: disclosure about compensation directly addresses bias and keeps advertising truthful. It allows the audience to interpret the testimonial with that context in mind, rather than implying an unearned level of endorsement.

Why the other ideas aren’t correct: simply not disclosing compensation would mislead consumers; removing the testimonial because compensation exists isn’t required if proper disclosure is provided; and requiring that every testimonial mention compensation is not a standard practice and would impractically limit authentic client feedback.