Advaita divides reality into three tiers, three levels of reality. There is ultimate reality which it calls paramarthika, the absolute reality. Then there is a level of illusion, error, dream which it calls prativhāsika. Shankaracharya: Ultimately speaking, the law of karma is not right. Just as the laws of physics are not right.
Swami Sarvapriynanda conducts a Q&A session following the discourse on "The Essence of All Vedanta" at the Vedanta Society of New York - Apr 8, 2018 | Vedanta NY