{"id":3783,"date":"2022-12-12T18:46:56","date_gmt":"2022-12-12T18:46:56","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2022\/12\/12\/the-pls-asks-the-supreme-court-to-deny-nars-pocket-listing-suit\/"},"modified":"2025-03-13T02:48:17","modified_gmt":"2025-03-13T02:48:17","slug":"the-pls-asks-the-supreme-court-to-deny-nars-pocket-listing-suit","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2022\/12\/12\/the-pls-asks-the-supreme-court-to-deny-nars-pocket-listing-suit\/","title":{"rendered":"The PLS asks the Supreme Court to deny NAR\u2019s pocket listing suit"},"content":{"rendered":"\n

In the latest installment of the National Association of Realtors\u2019<\/strong> antitrust lawsuit woes, former pocket listing service The PLS<\/strong> has asked the U.S. Supreme court to reject NAR\u2019s request to overturn a lower court\u2019s ruling on the trade group\u2019s pocket listing ban.<\/p>\n\n\n\n

The PLS, now known as The NLS<\/strong><\/a> (but still referred to as \u201cThe PLS\u201d in legal filings), filed an opposition brief on December 6.<\/p>\n\n\n\n

The brief was in response to the \u201cwrit of certiorari\u201d<\/a> \u2014 which NAR filed jointly with\u00a0BrightMLS<\/strong>,\u00a0California Regional MLS<\/strong>\u00a0(CRMLS) and\u00a0Midwest Real Estate Data<\/strong>\u00a0(MRED) on Sept. 23. In its petition, NAR asked the Supreme Court to review a ruling by the Ninth U.S. Circuit Court of Appeals made in April.<\/p>\n\n\n\n

The April ruling<\/a> overturned a lower court\u2019s decision to throw out a case filed by The PLS.<\/p>\n\n\n\n

In the initial lawsuit, The PLS alleged that NAR and the other defendants had violated the Sherman Antitrust Act and California\u2019s Cartwright Act for adopting a policy known as the Clear Cooperation Policy. This policy requires listing brokers to submit a listing to their MLS within one business day of marketing a property to the public.<\/p>\n\n\n\n

In addition to attracting attention from The PLS,\u00a0this policy piqued the interest of the U.S. Department of Justice<\/a>, which is currently investigating NAR over the CCP and other rules.<\/p>\n\n\n\n

\u201cIt would be hard to fathom a more obviously anticompetitive agreement than the Clear Cooperation Policy,\u201d The PLS\u2019 opposition brief stated. \u201cPLS introduced competition in the market for real estate listing services by giving both sellers\u2019 agents and buyers\u2019 agents a choice.\u201d<\/p>\n\n\n\n

In its initial filing with the Supreme Court, NAR wrote that the Ninth Circuit court\u2019s decision to overturn the dismissal of The PLS\u2019s case was \u201ccontrary and erroneous.\u201d In addition, the trade organization wrote that the decision was not in line with prior case law, \u201csowing confusion and inviting future courts to ignore or misapply fundamental principles of antitrust law.\u201d<\/p>\n\n\n\n

In addition, NAR argued against the lower court\u2019s interpretation of the relevant market in the case, and the lower court\u2019s analysis on the relevant market\u2019s legal right to sue.<\/p>\n\n\n\n

NAR considers the relevant market to be MLSs as \u201ca home-listing platform for buyers and sellers\u201d and therefore argues that the plaintiffs must allege a plausible injury to participants on both sides of the real estate market \u2014 not just to sellers, but also to buyers.<\/p>\n\n\n\n

The PLS, on the other hand, argues that the relevant market is MLSs as listing services for listing agents and buyers agents. It also alleges that the CCP harmed agents on both sides of the transactions by limiting competition to Realtor-affiliated MLSs and threatening agents with MLS membership suspension if they did not comply with the policy.<\/p>\n\n\n\n

\u201cPLS enabled sellers\u2019 agents to choose a listing service that allowed them greater discretion to preserve their clients\u2019 privacy and discretion,\u201d The PLS\u2019 opposition brief states. \u201cBut that choice is wiped away if every listing must also be posted on an MLS within 24 hours. PLS gave buyers\u2019 agents the choice of a database granting access to pocket listings that previously would be known only through word of mouth. By forcing all PLS listings to transform into non-pocket listings on MLSs, the Clear Cooperation Policy wiped that choice away too. In short, by enacting the Clear Cooperation Policy, NAR and its affiliated MLSs destroyed the opportunity of both buyers\u2019 agents and sellers\u2019 agents to choose the database service they liked best and forced them to use the MLS instead.\u201d<\/p>\n\n\n\n

According to The PLS\u2019 filing, forcing agents to stop listing solely on its site had \u201cdevastating consequences\u201d for agents, sellers, buyers and The PLS.<\/p>\n\n\n\n

\u201c[A]gents were forced to pay more money for a less valuable service \u2014 a service that eliminated both sellers\u2019 freedom of choice and buyers\u2019 opportunities to access a nationwide database of pocket listings,\u201d the filing reads. \u201cHome buyers and sellers lost the ability to choose their preferred ways to buy and sell houses. And PLS lost listings, participants, commercial opportunities, and access to capital.\u201d<\/p>\n\n\n\n

The PLS\u2019 filing also pushed back against NAR\u2019s statement that antitrust injuries to real estate agents lack standing to sue because, as members of NAR, they are alleged \u201cco-conspirators\u201d in the adoption of the CCP. <\/p>\n\n\n\n

For its part, The PLS believes that agents are not co-conspirators.<\/p>\n\n\n\n

\u201cTo the contrary, PLS alleges that affected real estate agents resisted promulgation of the Clear Cooperation Policy,\u201d the filing states. \u201cTo the extent those agents complied with the Clear Cooperation Policy, it was only because MLSs threatened them with fines and expulsion if they did not. Having attempted to squelch those dissenters\u2019 efforts, petitioners cannot turn around and claim that the dissenters are \u2018coconspirators\u2019 whose injuries (such as paying supracompetitive prices to access MLSs) must be disregarded.\u201d<\/p>\n\n\n\n

In an emailed statement responding to The PLS\u2019s opposition brief, Mantill Williams, NAR\u2019s vice president of communications, wrote: \u201cThe opposition filing overlooks what has been our core position from the start: the need to preserve a practice that provides the most information and the best possible market for home buyers and sellers. As was noted by the federal Judge who initially dismissed this case, the Clear Cooperation Policy (CCP) provides consumers with “\u2019access to more information regarding market conditions, enabling them to make better informed choices about the bundle of real estate brokerage services that will best serve their needs.\u2019\u201d As a leading advocate for homeownership, NAR determined that CCP was needed as a crucial protection for consumers, and it was overwhelmingly adopted. It ensures that publicly marketed property listings are widely available and accessible to all consumers.\u201d<\/p>\n\n\n\n

It remains to be seen if the Supreme Court will \u201cgrant cert\u201d to review the case, but the parties may have an answer as quickly as two weeks after the filing of the opposition brief.\u00a0<\/p>\n\n\n\n

As is standard practice, four of the nine justices on the Supreme Court must vote to accept a case. <\/p>\n\n\n\n

According to the federal government, the Supreme Court typically only agrees to hear a case if it \u201ccould have national significance, might harmonize conflicting decisions in the federal Circuit courts, and\/or could have precedential value.\u201d Each year, the court accepts just 100-150 of the more than 7,000 cases it receives.<\/p>\n","protected":false},"excerpt":{"rendered":"

Former pocket listing service The PLS has asked the U.S. Supreme court to reject NAR\u2019s request to overturn a lower court\u2019s ruling on the trade group\u2019s pocket listing ban.<\/p>\n","protected":false},"author":34740,"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":[1760],"class_list":["post-3783","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"\nThe PLS asks the Supreme Court to deny NAR\u2019s pocket listing suit - RealTrends - Blog<\/title>\n<meta name=\"description\" content=\"The PLS filed an opposition brief in early December asking the Supreme Court to reject NAR's request to overturn an appeals court ruling.\" \/>\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\/2022\/12\/12\/the-pls-asks-the-supreme-court-to-deny-nars-pocket-listing-suit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The PLS asks the Supreme Court to deny NAR\u2019s pocket listing suit\" \/>\n<meta property=\"og:description\" content=\"The PLS filed an opposition brief in early December asking the Supreme Court to reject NAR's request to overturn an appeals court ruling.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/preprod.realtrends.com\/blog\/2022\/12\/12\/the-pls-asks-the-supreme-court-to-deny-nars-pocket-listing-suit\/\" \/>\n<meta property=\"og:site_name\" content=\"RealTrends - 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