Walking into a luxurious condominium showroom promises a dream lifestyle. Yet, for countless homebuyers in Cebu City, the reality upon receiving their keys is a disappointing shock: a bare, concrete space that feels nothing like the spacious, beautifully staged model unit they fell in love with.
A New Ordinance for Honest Marketing
This common experience of deception is now the target of a proposed local law. Councilor Harold Kendrick Go has introduced the "Cebu City Showroom Truth-in-Advertising Ordinance." The measure seeks to force real estate developers to make a clear, visible distinction between their furnished display units and the actual "bare" condition of the property that will be turned over to the buyer.
The proposal builds upon existing national consumer protection laws, including the Consumer Act of the Philippines (RA 7394) and the Local Government Code of 1991 (RA 7160). It directly tackles the industry practice of using design tricks—like custom-made undersized furniture and strategic mirrors—to create an illusion of more space and higher value than what the buyer will actually receive.
Mandatory Disclosures and Realistic Displays
For many Filipinos, purchasing a home is the most significant financial decision of their lives. Misleading advertising can lead to a lifetime of regret in a unit that cannot accommodate their real needs. Councilor Go's ordinance is designed as a preventative step, aiming to stop disputes before they start by placing the burden of clarity on developers.
The draft law mandates specific actions. First, prominent disclosure boards, at least two feet by three feet in size, must be installed inside all showrooms. These boards must list the unit's precise floor area, the finishes and fixtures included, and crucially, all decorations, furnishings, or upgrades that are not part of the deal, along with their costs.
Second, it addresses the physical staging. Furniture used in showrooms must be of standard, realistic dimensions, banning the use of custom-scaled smaller items that artificially inflate the perception of room size.
Penalties for Violators and Enforcement
The ordinance also defines unlawful marketing practices. All print and digital advertisements must use government-approved floor plans and carry clear disclaimers like "artist's perspective" when needed. It would be illegal to misrepresent size or layout, use reduced-size furniture, or refuse to provide an official turnover plan.
If passed, enforcement will involve the Cebu City Housing Board, the Office of the Building Official, and the DHSUD 7 (Department of Human Settlements and Urban Development). Penalties will escalate with each violation:
- First offense: A fine of ₱3,000 and a compliance order.
- Second offense: A ₱4,000 fine and showroom suspension for up to 30 days.
- Third offense: A ₱5,000 fine, a longer suspension, and potential referral to DHSUD 7 for further sanctions.
Regulators will conduct random inspections of showrooms and marketing materials to ensure the unit promised is the unit delivered. This move marks a significant step toward restoring trust and transparency in Cebu City's booming real estate market.
