{"id":4648,"date":"2023-08-24T18:37:21","date_gmt":"2023-08-24T18:37:21","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2023\/08\/24\/judge-in-zillow-suit-allows-rexs-false-advertising-claims-to-stand\/"},"modified":"2025-03-13T02:52:44","modified_gmt":"2025-03-13T02:52:44","slug":"judge-in-zillow-suit-allows-rexs-false-advertising-claims-to-stand","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2023\/08\/24\/judge-in-zillow-suit-allows-rexs-false-advertising-claims-to-stand\/","title":{"rendered":"Judge in Zillow suit allows REX\u2019s false advertising claims to stand"},"content":{"rendered":"\n

Just days after awarding Zillow<\/a><\/strong> and National Association of Realtors<\/a><\/strong> (NAR) a major victory in their legal battle against REX Real Estate<\/strong>, the court made it clear that Zillow\u2019s fight is far from over<\/a>. <\/p>\n\n\n\n

A federal court judge concluded on Friday that in regard to REX\u2019s false advertising claims against Zillow, the firm has proven \u201cfalsity.\u201d The ruling came after REX filed a motion for summary judgement<\/a> on the matter.<\/p>\n\n\n\n

In his order, Judge Thomas Zilly of the U.S. District Court for the Western District of Washington wrote that \u201cfor the purposes of REX\u2019s Lanham Act Claim, the court concludes that ‘falsity’ has been established as a matter of law.\u201d<\/p>\n\n\n\n

The Lanham Act<\/a> states that anyone who uses false or misleading facts or misrepresents the nature of goods or services, \u201cshall be liable in a civil action by any person who believes that he or she is or is likely to be damaged by such act.\u201d<\/p>\n\n\n\n

In REX\u2019s Lanham Act portion of its lawsuit, the firm 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 according to earlier court documents.<\/p>\n\n\n\n

\u201cIt is literally false not to characterize REX\u2019s listings as \u2018Agent Listings.\u2019 Placing 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

Originally filed by REX in March 2021<\/a>, the suit 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 earlier court filings from Zillow, the listing giant 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

However, according to REX, in January 2021, in some states, including Washington, the firm employed licensed brokers and agents, which should have qualified REX\u2019s listings as \u201cagent listings.\u201d<\/p>\n\n\n\n

\u201cNevertheless, REX\u2019s for sale listings were relegated, along with FSBO and non-MLS listings, to the \u201cOther listings\u201d page because REX\u2019s brokers and agents were not members of the MLSs from which Zillow was receiving IDX feeds,\u201d the filing reads.<\/p>\n\n\n\n

When Zillow launched its two-tab design, the company also created an \u201cFAQ\u201d page clarifying the differences between the tabs. REX pointed out that the FAQ page \u201cdid not indicate that the ‘Other listings’ tab might include homes for sale by agents or brokers who were not MLS members,\u201d and that it \u201cfailed to define MLS or to clarify that some licensed real estate agents and brokers do not belong to an MLS.\u201d<\/p>\n\n\n\n

In his ruling, Zilly wrote: \u201cWhen the labels are viewed side-by-side, the unambiguous assertion is that one tab includes homes listed for sale by agents and the second tab contains all other listings, i.e., homes for sale by their owners or by non-agents. When used in contrast to ‘agent listings,’ the phrase ‘other listings’ can only be understood as indicating those listings ‘remaining or not included’ in or ‘distinct’ or ‘different’ from agent listings, or in other words, non-agent listings.\u201d<\/p>\n\n\n\n

In an emailed statement, attorneys at Boies Schiller representing REX, said: “We believe the judge\u2019s ruling on the Lanham Act will help us move the case and is in the best interest of the consumer.”<\/p>\n\n\n\n

This ruling came just days after Zilly dismissed all antitrust allegations<\/a> made by REX against NAR and Zillow.<\/p>\n\n\n\n

“Last week\u2019s antitrust ruling showed that REX\u2019s primary claim was without merit. This victory was a big step towards us prevailing in this case given their main argument has been tossed. We look forward to presenting our case in court on these remaining claims,” Will Lemke, Zillow\u2019s manager of corporate communications, wrote in an email. “We believe customers understand the two-tab system and are confident that the evidence will show that REX\u2019s business failed for reasons unrelated to Zillow.\u201d<\/p>\n\n\n\n

The suit is scheduled to head to trial on Sept. 18<\/a>.<\/p>\n\n\n\n

This story was updated to include commentary from Zillow.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Just days after awarding Zillow and NAR a major victory in their legal battle against REX Real Estate, the court made it clear that Zillow\u2019s fight is far from over.<\/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-4648","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"\nJudge in Zillow suit allows REX\u2019s false advertising claims to stand - RealTrends - Blog<\/title>\n<meta name=\"description\" content=\"Just days after awarding Zillow and NAR a major victory in their legal battle against REX Real Estate, the court made it clear that Zillow\u2019s fight is far from over.\" \/>\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\/2023\/08\/24\/judge-in-zillow-suit-allows-rexs-false-advertising-claims-to-stand\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Judge in Zillow suit allows REX\u2019s false advertising claims to stand\" \/>\n<meta property=\"og:description\" content=\"Just days after awarding Zillow and NAR a major victory in their legal battle against REX Real Estate, the court made it clear that Zillow\u2019s fight is far from over.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/preprod.realtrends.com\/blog\/2023\/08\/24\/judge-in-zillow-suit-allows-rexs-false-advertising-claims-to-stand\/\" \/>\n<meta property=\"og:site_name\" content=\"RealTrends - 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