{"id":4720,"date":"2023-09-29T16:07:53","date_gmt":"2023-09-29T16:07:53","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2023\/09\/29\/zillow-moves-to-have-rex-suit-dismissed\/"},"modified":"2025-03-13T02:53:05","modified_gmt":"2025-03-13T02:53:05","slug":"zillow-moves-to-have-rex-suit-dismissed","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2023\/09\/29\/zillow-moves-to-have-rex-suit-dismissed\/","title":{"rendered":"Zillow moves to have REX suit dismissed"},"content":{"rendered":"\n

After nearly 10 days of trial proceedings, Zillow<\/a> <\/strong>is ready for its years-long legal battle with REX Real Estate<\/a><\/strong> to be over. On Wednesday, just nine days after the long-awaited trial\u2019s September 18 start date,<\/a> the real estate behemoth file a motion for judgment as a matter of law in the U.S. District Court in Seattle hearing the trial.<\/p>\n\n\n\n

A judgement as a matter of the law is permissible if there is no legally sufficient basis for a reasonable jury to find for the nonmoving party (in this instance, REX) on that issue.<\/p>\n\n\n\n

Originally filed by REX in March 2021<\/a>, against Zillow and the National Association of Realtors<\/a><\/strong>, the lawsuit 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<\/a>, 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, creating a two-tab design for agent listings and \u201cother listings.\u201d<\/p>\n\n\n\n

In January 2022, NAR filed a countersuit<\/a> claiming that REX uses false advertising and misleading claims to deceive consumers in violation of the Lanham Act, but the countersuit was dismissed<\/a> in late April 2022.<\/p>\n\n\n\n

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

A little over a year later, in mid-June 2023, the three parties involved in the suit, all filed motions for summary judgment<\/a> on at least some issues, if not the entire lawsuit.<\/p>\n\n\n\n

While Judge Thomas Zilly dismissed REX\u2019s antitrust claims<\/a> against NAR and Zillow, he allowed the discount brokerage\u2019s false advertising claim<\/a> under the Lanham Act<\/a>, and a claim for unfair or deceptive trade practices under Washington\u2019s Consumer Protection Act (WCPA) to stand.<\/p>\n\n\n\n

According to Zillow\u2019s latest motion, since the start of the trial, REX has failed to produce sufficient evidence on either claim.<\/p>\n\n\n\n

\u201cThe evidence REX promised would come at trial has not materialized, and the evidence introduced at trial falls short of what is required for multiple elements of these claims,\u201d the motion reads. \u201cAccordingly, REX\u2019s claims should not be put to a jury, and the Court should enter judgment in Zillow\u2019s favor as a matter of law under Federal Rule of Civil Procedure 50(a).\u201d<\/p>\n\n\n\n

In order to prove their Lanham Act claim, REX must identify particular statements made by Zillow and then show that they are false. According to earlier filings, REX highlighted Zillow\u2019s tab labels separating types of listings as the statements it was challenging.<\/p>\n\n\n\n

While Zillow acknowledged that the court determined that the tab labels are literally false, as REX employs agents who are realtor association members, \u201cit has never has addressed whether the default status or two-tab display as a whole are false statements of fact,\u201d which would be necessary to prove the Lanham Act claim.<\/p>\n\n\n\n

\u201cThe non-communicative aspects of Zillow\u2019s display\u2014that merely divide listings and default one tab over the other\u2014do not make any such claim,\u201d the motion reads. \u201cIndeed, design decisions that \u2018limit [users\u2019] access\u2019 to materials are distinct from any \u2018false statement.\u2019\u201d<\/p>\n\n\n\n

In addition, for the Lanham Act to apply, the speech in question must be commercial speech, something Zillow claims the two-tab display is not.<\/p>\n\n\n\n

\u201cThere is no evidence that Zillow intended to convey any particularized message with the default status or two-tab display or that the consumers who viewed these features took away any particular message,\u201d the filing states. \u201cZillow is an \u2018online database of information\u2019 that provides \u2018free, publicly available\u2019 information that is \u2018not transactional.\u2019\u201d<\/p>\n\n\n\n

The motion also claims that \u201cREX has not developed evidence that any aspect of Zillow\u2019s two-tab display was meant to influence consumers to buy defendant\u2019s goods or services,\u201d and that there is \u201cno evidence that a substantial part of Zillow\u2019s audience was deceived by the default status or two-tab display.\u201d<\/p>\n\n\n\n

Finally, Zillow also states that that REX \u201chas not even attempted to show injury flowing directly from the alleged deception caused by the distinct aspects of the two-tab display,\u201d something that is necessary if REX hopes to be awarded damages.<\/p>\n\n\n\n

\u201cREX\u2019s own fact witnesses did not offer any testimony supporting the notion that the labels, in particular, caused them harm,\u201d the motion continues. \u201cMoreover, the fact that there was an impact on for-sale-by-owner listings\u2014listings that properly would be labeled as \u2018Other listings\u2019\u2014shows it is not the labels that had this impact.\u201d<\/p>\n\n\n\n

Regarding the WCPA claim, Zillow states that all of the same reasons from the Lanham Act claim apply.<\/p>\n\n\n\n

Zillow did not wish to comment and REX has not returned a request for comment.<\/p>\n","protected":false},"excerpt":{"rendered":"

Zillow asks judge to rule on REX’s false advertising allegations, claiming that REX does not have sufficient evidence for a jury to decide.<\/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-4720","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"\nZillow moves to have REX suit dismissed - RealTrends - Blog<\/title>\n<meta name=\"description\" content=\"Zillow asks judge to rule on REX's false advertising allegations, claiming that REX does not have sufficient evidence for a jury to decide.\" \/>\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\/09\/29\/zillow-moves-to-have-rex-suit-dismissed\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Zillow moves to have REX suit dismissed\" \/>\n<meta property=\"og:description\" content=\"Zillow asks judge to rule on REX's false advertising allegations, claiming that REX does not have sufficient evidence for a jury to decide.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/preprod.realtrends.com\/blog\/2023\/09\/29\/zillow-moves-to-have-rex-suit-dismissed\/\" \/>\n<meta property=\"og:site_name\" content=\"RealTrends - 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