{"id":2481,"date":"2021-09-03T23:03:42","date_gmt":"2021-09-03T23:03:42","guid":{"rendered":"https:\/\/www.realtrends.com\/blog\/2021\/09\/03\/judge-lets-nar-zillow-lawsuit-proceed\/"},"modified":"2025-03-13T02:39:03","modified_gmt":"2025-03-13T02:39:03","slug":"judge-lets-nar-zillow-lawsuit-proceed","status":"publish","type":"post","link":"https:\/\/www.realtrends.com\/blog\/2021\/09\/03\/judge-lets-nar-zillow-lawsuit-proceed\/","title":{"rendered":"Judge lets NAR, Zillow lawsuit proceed"},"content":{"rendered":"\n<p>A lawsuit that alleges the powerful <strong>National Association of Realtors<\/strong> and home listings giant <strong>Zillow<\/strong> illegally conspire to snuff out competition has survived NAR and Zillow\u2019s motion to dismiss the case.<\/p>\n\n\n\n<p>Federal judge Thomas Zilly issued a written order Thursday that found the complaint by real estate brokerage <strong>REX<\/strong> plausibly claims, \u201cbrokerages, agents, and even customers have no choice but to comply with NAR\u2019s so-called optional rules.\u201d<\/p>\n\n\n\n<p>The Seattle-based judge\u2019s ruling is the latest instance of legal hot water for NAR, a guild for real estate agents that also represents brokerages and advocates for consumers. The Biden administration Justice Department <a href=\"https:\/\/www.housingwire.com\/articles\/is-nar-ready-to-rumble-with-doj\/\" target=\"_blank\" rel=\"noreferrer noopener\">announced in July<\/a> that they have withdrawn from a consent decree with the trade group to \u201cpermit a broader investigation of NAR rules and conduct to proceed without restriction.\u201d<\/p>\n\n\n\n<p>Also, the Biden administration has <a href=\"https:\/\/www.housingwire.com\/articles\/policing-the-pocket-listings-ban\/\">intervened in lawsuits<\/a> against NAR \u2013 including REX\u2019s complaint. According to Zilly\u2019s ruling, \u201cThe United States Justice Department filed a statement of interest asking this court to decline to draw any inference in NAR\u2019s favor from the 2008 consent decree, which is now expired.\u201d<\/p>\n\n\n\n<p><em>That<\/em> consent decree dealt with whether NAR-sanctioned multiple listings services could withhold data from consumer facing websites like Zillow \u2013 <a href=\"https:\/\/www.housingwire.com\/articles\/are-u-s-real-estate-commissions-illegal\/\" target=\"_blank\" rel=\"noreferrer noopener\">a resolution that arguably enabled<\/a> Zillow and additional websites like <strong>Redfin <\/strong>to blossom.<\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-background has-vivid-red-background-color has-vivid-red-color\"\/>\n\n\n\n<p class=\"has-text-align-center\"><a href=\"https:\/\/www.housingwire.com\/white-paper\/how-your-brokerage-can-evolve-to-meet-ever-changing-industry-forces\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>How Your Brokerage Can Evolve to Meet Ever-Changing Industry Forces<\/strong><\/a><\/p>\n\n\n\n<p class=\"has-text-align-center\">A range of forces is transforming the real estate industry on a daily basis.This white paper will explore some of the industry forces making headlines, along with an approach for meeting them head-on.&nbsp;<\/p>\n\n\n\n<h6 class=\"has-text-align-center wp-block-heading\" id=\"h-presented-by-weichert\"><strong>Presented by: Weichert<\/strong><\/h6>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-background has-vivid-red-background-color has-vivid-red-color\"\/>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p><a href=\"https:\/\/www.prnewswire.com\/news-releases\/rex-brief-filed-in-case-against-zillow-and-nar-points-to-collusion-which-deceives-consumers-and-banishes-competition-301288227.html\" target=\"_blank\" rel=\"noreferrer noopener\">REX\u2019s lawsuit<\/a> stems from Zillow changing how it collects the home listings information it publicly displays. Zillow moved late last year from syndication agreements with various parties to getting Internet data display, or IDX, feeds from Multiple Listings Services.<\/p>\n\n\n\n<p>To get these feeds, Zillow had to comply with the vast majority of MLSs that adopt the NAR\u2019s \u201cno commingling\u201d rule. Under the rule, Zillow was requested to separate out listings from MLS agents with those not part of the MLS. These include homes listed for sale by REX agents, as the brokerage is not part of NAR.<\/p>\n\n\n\n<p>As a result, there is now an \u201cagent listings\u201d and \u201cother listings\u201d tab on Zillow\u2019s website. REX listings are relegated to the \u201cother\u201d tab.<\/p>\n\n\n\n<p>REX calls such separation \u201cthe segregation rule,\u201d alleging it \u201cfalsely indicates that REX\u2019s listings are not represented by licensed agents\u201d and suggests to the consumer that REX\u2019s listings are somehow inferior.<\/p>\n\n\n\n<p>The Austin, Texas-based brokerage, which hires salaried agents and advertises offering consumers a reduced commission payment, claims its sales \u201cplummeted\u201d since Zillow\u2019s rule.<\/p>\n\n\n\n<p>Part of what REX wanted from filing the complaint was that the judge would issue a preliminary injunction against Zillow\u2019s \u201cother listings\u201d tab. But in a June written order, Zilly <a href=\"https:\/\/www.housingwire.com\/articles\/judge-rules-for-zillow-in-rex-antitrust-lawsuit\/\">roundly rejected<\/a> REX\u2019s call to enjoin Zillow\u2019s behavior. \u201cPlaintiff has not supported its claim that there is any deception that is injuring a substantial portion of the purchasing public,\u201d Zilly stated.<\/p>\n\n\n\n<p>On Thursday, though, the judge issued a quite different ruling.<\/p>\n\n\n\n<p>Zilly approvingly quotes from REX\u2019s complaint that NAR \u201cis the rare trade association that sets the rule of competition among its members,\u201d and these combined actions \u201cconstitute illegal restraints on trade.\u201d<\/p>\n\n\n\n<p>As for Zillow, the judge said that the listings website, whose business now is largely iBuying, \u201cAffirmatively redesigned its website to enforce an allegedly misleading labeling system\u201d that may deceive consumers.<\/p>\n\n\n\n<p>The judge\u2019s ruling is just looking at REX\u2019s legal claims, and not possible facts in the case. If the lawsuit does not settle, the next stage is each party producing evidence to support their arguments.<\/p>\n\n\n\n<p>NAR responded to questions with a written statement from spokesperson Mantill Williams.<\/p>\n\n\n\n<p>\u201cWe are disappointed in the decision but remain confident we will provide in court,\u201d Williams stated in part. \u201cNAR remains committed to defending local broker organizations that create highly competitive markets.\u201d<\/p>\n\n\n\n<p>Zillow also replied with a written statement.<\/p>\n\n\n\n<p>\u201cWe believe and continue to maintain that REX\u2019s complaints are without merit,\u201d the statement read. \u201cAs MLS participants we are required to abide by the MLS rules and regulations.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A lawsuit that alleges the powerful National Association of Realtors and home listings giant Zillow illegally conspire to snuff out competition has survived NAR and Zillow\u2019s motion to dismiss the case.<\/p>\n","protected":false},"author":16592,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[736],"class_list":["post-2481","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - 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