{"id":1826,"date":"2018-01-16T21:34:00","date_gmt":"2018-01-16T21:34:00","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2018\/01\/16\/zestimate\/"},"modified":"2025-03-13T02:32:06","modified_gmt":"2025-03-13T02:32:06","slug":"zestimate","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2018\/01\/16\/zestimate\/","title":{"rendered":"Zillow sued for concealing Zestimates on certain listings"},"content":{"rendered":"

The latest Zillow<\/a> legal troubles again surround their Zestimates; this time they are being sued for their Zestimates violating federal Antitrust laws. The company has allegedly violated and continue to violate Section 1 of the Sherman Act, 15 U.S.C. \u00a7 1 and the New Jersey Antitrust Act, N.J.S.A. 56:9-3.<\/p>\n

<\/p>\n

Plaintiff, EJ MGT LLC, based in New Jersey, filed suit again Zillow Group Inc. and Zillow Inc. today. In a 21-point legal brief outlining their specific violations, two things become immediately clear (assuming of course there is truth in these allegations): Zillow is giving preferential treatment to preferred brokerages (labeled \u2018co-conspirator Broker[s] in the lawsuit) and Zestimates are wildly inaccurate (as many have adamantly stated since Zestimates\u2019 conception).<\/p>\n

The first few points of the brief explain exactly what Zillow is being accused of doing: \u201cthis antitrust action arises from Zillow\u2019s conspiracy with certain real-estate brokerage companies to selectively conceal \u2018Zestimates.\u2019\u201d Zillow\u2019s estimate of a residential property\u2019s \u201cfair market value\u201d which the lawsuit states they know \u201cto be inaccurate,\u201d have allowed \u201conly select brokers to conceal the display of Zestimates on their listings to the exclusion of the general public.\u201d<\/p>\n

The lawsuit goes on to state that \u201cthese agreements between Zillow and certain co-conspirator brokers of residential real estate restrain trade (read: the agents\/brokers being allowed to conceal unwanted Zestimates, henceforth referred to as \u2018Co-conspirator Brokers\u2019) and deprive Plaintiff and the public in general of the benefits of open and robust competition in two markets: the residential real estate market and the residential real estate brokerage market.\u201d<\/p>\n

In essence, Zillow and the Co-conspirators Brokers have made an illegal agreement regarding the display of Zestimates on Zillow\u2019s site.<\/p>\n

Zillow has long touted their Zestimates as a \u201cuser-friendly format to promote transparent real-estate markets and allow people to make informed decisions;\u201d except Zestimates are often believed to be inaccurate and now they\u2019re being concealed at the request of a select group of Co-conspirator Brokers<\/strong> \u2013 a far cry from making real estate more transparent.<\/p>\n

If the lawsuit\u2019s claims have any validity behind them, it seems as though Zillow may be in for a bumpy ride. Item 10 in the suit states, \u201cZillow has acknowledged that it conceals Zestimates as a result of agreements with only \u2018certain brokers\u2019 who receive \u2018certain treatment\u2019\u201d and uses a message screenshotted from Zillow\u2019s Help Center as proof these words were in fact used to explain why some listings had prominent Zestimates while others did not:<\/p>\n

\"Zestimate\"You may be wondering what brought about this lawsuit; it seems Plaintiff, EJ MGT LLC, owns and is marketing a property located in Cresskill, New Jersey, through an agent unaffiliated with Zillow (not a Co-Conspirator Broker). Therefore, their listing contains a prominently displayed Zestimate, while a similar listing in nearby Alpine, New Jersey, which is listed through a \u201cCo-conspirator Broker,\u201d conceals the Zestimate:<\/div>\n
\"Zestimate\"<\/div>\n

The above example is not the only one outlined in the case, however. Item 12 of the lawsuit states that further evidence can be seen by comparing a residence page for a property while it was listed with a Co-conspirator Broker versus the same residence page once the property was off the market. One clearly conceals the Zestimate, while the latter displays it clearly underneath the listing price.<\/p>\n

For reference, the Co-conspirator Broker listing was screenshot on December 26, 2017 and the screenshot after it was taken off the market with the Zestimate was taken on January 2, 2018. Merely a week in between images, and yet the difference of how the ad is displayed is quite apparent:<\/p>\n

\"Zestimate\"In essence, Zillow has violated the very transparency they claimed to create.<\/div>\n

Zillow is allegedly promoting misleading and inaccurate information while using their marketing power to charge brokers to hide this information which could negatively impact a sale, and which Zillow itself has acknowledged is sometimes inaccurate.<\/p>\n

Also, general members of the public have no way to prevent Zillow from obtaining and posting information in this way, and it cannot be altered without hiring a Co-conspirator Broker<\/strong>, as Zillow has explicitly refused to offer the option to hide information to individual home owners, further deepening the dependency on Co-conspirator Brokers.<\/p>\n

Because of their alleged refusal to treat everyone equally and \u201cempower homebuyers with information,\u201d they have potentially restrained trade in connection with the exchange of information regarding home valuation and offered anti-competitive benefits to only those brokers chosen to purchase that \u2018special\u2019 service package from Zillow that removes Zestimates from listings.<\/p>\n

Therefore, brokers are not on even footing: when a seller attempts to price check; the brokers without it could be losing out to those who have the \u2018special\u2019 package and removal of Zestimates alongside listing prices.<\/p>\n

So far, each individual Co-conspirator Broker has not been named; they have been named as a group: Sotheby\u2019s International Realty, Inc., Coldwell Banker Real Estate LLC, Century 21 Real Estate LLC, The Corcoran Group ERA, and Weichert Realty, according to court documents. It is unlikely that any action would ever impact the brokerages, rather Zillow Group itself.<\/p>\n

Zillow is being sued for five counts: two counts of conspiracy to restrain trade, one count of violating the New Jersey Consumer Fraud Act, one count of slander of title\/product disparagement, and one count of interference with prospective economic advantage. A jury trial has been requested.<\/p>\n

Source: The Real Daily <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The latest Zillow legal troubles again surround their Zestimates; this time they are being sued for their Zestimates violating federal Antitrust laws. The company has allegedly violated and continue to violate Section 1 of the Sherman Act, 15 U.S.C. \u00a7 1 and the New Jersey Antitrust Act, N.J.S.A. 56:9-3.<\/p>\n","protected":false},"author":15802,"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":[],"class_list":["post-1826","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"\nZillow sued for concealing Zestimates on certain listings<\/title>\n<meta name=\"description\" content=\"Zillow being sued for Zestimates is nothing new, but they\u2019re now being accused of concealing Zestimates on \u201cCo-Conspirator Broker\u201d listings.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/preprod.realtrends.com\/blog\/2018\/01\/16\/zestimate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Zillow sued for concealing Zestimates on certain listings\" \/>\n<meta property=\"og:description\" content=\"Zillow being sued for Zestimates is nothing new, but they\u2019re now being accused of concealing Zestimates on \u201cCo-Conspirator Broker\u201d listings.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/preprod.realtrends.com\/blog\/2018\/01\/16\/zestimate\/\" \/>\n<meta property=\"og:site_name\" content=\"RealTrends - 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