TREADSTONE LAW · ONTARIO · DIGITAL LEGAL SERVICES · EST. MMXXI ·TSL
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Buying & Selling a Business

Can a broker's marketing material make promises that aren't actually true?

TSL Written by the Treadstone Law team· Updated August 2026

No, not properly — marketing material a broker prepares for your business is expected to be accurate, based on real information about the business, not embellished or invented to make the listing more attractive. This matters for you as the seller too, not just the buyer receiving it: if a broker overstates performance or omits material problems in materials sent to prospective buyers, and a buyer later discovers the truth, that can jeopardize a deal or expose you to a claim from a buyer who relied on inaccurate information, even if you weren't the one who wrote it.

Review marketing materials before they go out rather than assuming the broker got everything right, and correct anything that overstates your numbers or glosses over known issues. If you're the buyer reviewing materials from a seller's broker, treat marketing claims as a starting point for your own due diligence, not as verified fact — brokers are working from information the seller provided, and errors or optimistic framing can creep in even without any intent to mislead. A Treadstone business lawyer can help either side address inaccuracies before they become a bigger problem in negotiations.

Key takeaways

  • Marketing material should be accurate, not embellished to make a listing more attractive.
  • Sellers should review marketing materials before they go out, since inaccuracies can expose them too.
  • Buyers should treat marketing claims as a starting point for diligence, not verified fact.
  • Correct inaccuracies early rather than letting them surface later in negotiations.
This is general information, not legal advice. It doesn’t create a lawyer–client relationship, and the rules can change. For advice on your situation, a Treadstone business lawyer can help.
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