What is one reason for implementing fines for fraudulent activities?

Implementing fines for fraudulent activities serves primarily to deter unethical behavior. This is crucial in maintaining the integrity of the industry and protecting consumers. When fines are imposed, they act as a strong disincentive for individuals or organizations considering engaging in dishonest practices. The prospect of facing significant financial penalties can compel companies and agents to adhere to ethical standards and laws, thereby promoting fairness and accountability in the marketplace.

Deterring unethical behavior through fines helps to foster a trust-based environment among consumers and businesses, ensuring that all parties are operating under the same set of rules. This reinforces the importance of ethical conduct in the property market, which can have a positive impact on the overall health of the industry.

The other options do not align as closely with the purpose of imposing fines for fraudulent activities, as they focus on promoting competition or improving market dynamics, which are not direct outcomes of penalizing fraud.