{"id":4428,"date":"2023-06-12T19:38:36","date_gmt":"2023-06-12T19:38:36","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2023\/06\/12\/rexs-legal-battle-with-nar-and-zillow-kicks-into-high-gear\/"},"modified":"2025-03-13T02:51:42","modified_gmt":"2025-03-13T02:51:42","slug":"rexs-legal-battle-with-nar-and-zillow-kicks-into-high-gear","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2023\/06\/12\/rexs-legal-battle-with-nar-and-zillow-kicks-into-high-gear\/","title":{"rendered":"REX\u2019s legal battle with NAR and Zillow kicks into high gear"},"content":{"rendered":"\n

With the September trial date<\/a> quickly approaching, thing are starting to heat up in REX Real Estate\u2019s<\/a><\/strong> ongoing antitrust lawsuit against the National Association of Realtors<\/a> <\/strong>(NAR), Trulia<\/a><\/strong> and Zillow<\/a>.<\/strong><\/p>\n\n\n\n

On Friday, all three parties filed motions for summary judgment on at least some issues, if not the entire lawsuit.<\/p>\n\n\n\n

The lawsuit was originally filed by REX in March 2021<\/a> and alleges that changes made to Zillow\u2019s website \u201cunfairly hides certain listings, shrinking their exposure and diminishing competition among real estate brokers.\u201d<\/p>\n\n\n\n

Two months prior, in January 2021, Zillow began moving homes out of its initial search results for sellers who chose not to use agents adhering to the NAR and local multiple listing service<\/a> (MLS) practices.<\/p>\n\n\n\n

REX ceased its brokerage operations<\/a> in mid-May of 2022.<\/p>\n\n\n\n

According to Zillow\u2019s motion for summary judgement, Zillow changed its website after making the decision to swap to the \u201cgold standard source of listings data,\u201d the Internet Data Exchange (IDX) feed that the multiple listing services use. Zillow said that it joined the MLSs to guarantee access to the IDX feeds.<\/p>\n\n\n\n

After years of going back and forth, filing various motions to compel<\/a> during the discovery phases and countersuits<\/a>, both Zillow and NAR filed separate motions on Friday for summary judgement for the lawsuit.<\/p>\n\n\n\n

According to NAR\u2019s filing, after the discovery phase, \u201cit remains undisputed that the agreement between NAR, MLSs and Zillow to \u2018segregate, conceal, and demote\u2019 REX\u2019s listings on Zillow\u2019s website never happened, the changes to Zillow\u2019s website did not harm competition, and the purported decline in REX\u2019s business was not caused by hard to competition.\u201d<\/p>\n\n\n\n

NAR\u2019s lawyers argue that it is an \u201cundisputed fact\u201d that there is no direct evidence of an agreement between NAR, MLSs and Zillow to separately display MLS and non-MLS listings on Zillow\u2019s website.<\/p>\n\n\n\n

The trade group also stated that the rule cited by REX (Section 18.3.11 of the NAR Handbook), which reads: \u201cListings obtained through IDX feeds from Realtor Associations MLSs where the MLS participant hold participatory rights must be displayed separately from listings obtained from other sources. Listings obtained from other sources (e.g. from other MLSs, from non-participation brokers, etc.) must display the source from with each such listing was obtained,\u201d is an optional rule. <\/p>\n\n\n\n

In addition, NAR stated that it does not enforce or monitor the application of optional rules, nor does it \u201ctell participants (like Zillow) how to design their websites to comply with local rules.\u201d<\/p>\n\n\n\n

In an emailed statement, Mantill Williams, a NAR spokesperson, wrote: \u201cNAR continues to believe this lawsuit is without merit and remains confident we will ultimately prevail. NAR guidelines and local broker marketplaces create highly competitive markets, empower small businesses and ensure equitable home ownership opportunities, superior customer service and greater cost options for all buyers and sellers.\u201d<\/p>\n\n\n\n

Like NAR, Zillow maintains in its filings that its decision to join the MLSs and change its website design were made independently.<\/p>\n\n\n\n

\u201cThere is zero direct evidence of any agreement involving both Zillow and NAR, let alone evidence of an agreement between them to exclude discount brokers like REX,\u201d Zillow\u2019s motion reads. \u201cNor can REX point to sufficient circumstantial evidence that could tend to disprove that Zillow acted independently in complying with the various local No-Commingling Rules that are at the center of REX\u2019s claim.\u201d<\/p>\n\n\n\n

The firm also claims that REX \u201cseized upon Zillow\u2019s website design change to hide its own business failings.\u201d<\/p>\n\n\n\n

\u201cWe continue to maintain the claims made in REX\u2019s lawsuit are without merit,\u201d a Zillow spokesperson wrote in an email. \u201cREX chose to use Zillow\u2019s services to advertise their for-sale properties on Zillow \u2013 for free. Zillow has consistently advocated for outdated rules to be changed to allow the broader display of all listings on all platforms, including For Sale By Owner and listings from other companies like REX. The evidence clearly shows that Zillow\u2019s business decisions were squarely focused on improving the data on our site and the experience for customers.\u201d<\/p>\n\n\n\n

REX, however, sees things a bit differently and has asked the court for summary judgement on two issues.<\/p>\n\n\n\n

The first item REX takes issue with are NAR\u2019s and Zillow\u2019s statements that say it is an \u201cundisputed fact\u201d that there was no agreement between NAR, the MLSs and Zillow to separately display MLS and non-MLS listings on Zillow\u2019s website.<\/p>\n\n\n\n

According to REX\u2019s lawyers, all that is required to prove that there was an agreement is a \u201cmeeting of the minds\u201d and that \u201cthe understanding may be tacit and can arise without verbal communication.\u201d<\/p>\n\n\n\n

The second claim REX is asking the court to pass judgement on is the element of \u201cfalsity,\u201d as it alleges that Zillow \u201cfalsely labeled REX listings as \u2018Other Listings\u2019 rather than \u2018Agent Listings\u2019 when REX\u2019s listings were in fact offered by licensed real estate agents.\u201d<\/p>\n\n\n\n

\u201cIt is literally false not to characterize REX\u2019s listings as \u2018Agent Listings,\u2019\u201d REX wrote in the motion. \u201cPlacing REX listings in the \u2018Other listings\u2019 category when juxtaposed with \u201cAgent Listings\u201d as the only other option is also literally false by necessary implication. Zillow\u2019s display is not only false, it is also misleading.\u201d<\/p>\n\n\n\n

When asked for additional commentary, REX’s lawyers at Boise Schiller wrote in an email that they feel their “arguments are clearly stated in the motions.”<\/p>\n\n\n\n

Rulings on these motions are expected in the coming weeks. <\/p>\n","protected":false},"excerpt":{"rendered":"

As the September trial date approaches, NAR, Zillow and REX have all filed motions for summary judgement in REX’s antitrust lawsuit.<\/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-4428","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"\nREX\u2019s legal battle with NAR and Zillow kicks into high gear<\/title>\n<meta name=\"description\" content=\"As the September trial date approaches, NAR, Zillow and REX have all filed motions for summary judgement in REX's antitrust lawsuit.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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