Despite the ruling, Zillow looks forward to taking the case to a jury, saying it is “confident that the evidence shows that REX’s business failed for reasons unrelated to Zillow.” Ta.
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A federal court has ruled that real estate giant Zillow falsely labeled REX Real Estate listings on its website, defeating a discount broker before the two companies’ legal battle went to trial. Ta.
On Friday, U.S. District Judge Thomas S. Giry of the Western District of Washington said the “Agent List” and “Other Listings” tabs on Zillow’s website were “literally false” and called REX’s listing “other.” By placing it on the list, Zillow “falsely stated that REX was not (or did not employ) an agent.”
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“When you view the labels side-by-side, one tab contains the homes listed for sale by agents, and the second tab contains all other listings, homes for sale by owners or non-agents. I can unequivocally assert that there is,” Giry writes. Ordered August 18th.
Zillow claims that it introduced the two tabs to comply with the National Association of Realtors’ “No Bring-Ins” rule. The rule is voluntary and adopted by 79 percent of realtor-affiliated multiple listing services (MLS). If adopted, recipients of MLS Internet Data Exchange (IDX) list feeds are expected to view lists derived from MLS separately from lists received from other sources. Zillow’s website will switch to his IDX in early 2021.
“When the two-tab system was activated in January 2021, REX employed licensed brokers and agents in various states, including Washington,” Zilly wrote.
“Therefore, the REX listing qualified as an ‘agency listing’ as opposed to an owner-occupied sale (“FSBO”) or non-agency listing. Nevertheless, REX properties for sale were relegated to the ‘Other Properties’ page along with FSBO and non-MLS properties. Because REX brokers and agents said Zillow was receiving his IDX feed he was not a member of MLS. “
In addition, Zilly stated that the FAQ page on Zillow’s website did not explain that the “Other Properties” tab may include homes sold by agents or brokers who are not MLS participants, stating that “MLS The term “” has not been defined, and the following has not been pointed out. Some licensed realtors and brokers are not affiliated with MLS.
In March 2022, REX announced that Zillow’s decision to split listings into ‘Agent Listings’ and ‘Other Listings’ tabs to comply with anti-mixing rules would dramatically affect the views of REX listings on Zillow and NAR. filed lawsuits against Zillow and NAR for allegedly reducing Sales went down. In addition, REX said that this decision would have a negative impact on consumers, especially merchants, and[listing] Since buyers aren’t searching the More Listings tab, you’ll have more days on the market and can accept lower selling prices.
The case is currently scheduled for trial on September 18th and will last for two weeks. Last Wednesday, Zilly dismissed all of REX’s antitrust claims against Zillow and NAR, excluding the latter as a defendant in the lawsuit. He dismissed the motion with prejudice, meaning forever unless REX decides to appeal the order.
in Ordered separately on August 4thZilly defends against REX’s claims against Zillow, including claims for false advertising under the Lanham Act, claims for unfair or deceptive trade practices under the Washington Consumer Protection Act (CPA), and claims alleging defamation. The existence of three cases was recognized. Friday’s order relates to REX’s false advertising claims under the Lanham Act.
Despite this order, Zillow believes the jury will uphold its arguments on the remaining claims.
“Last week’s antitrust ruling demonstrated that REX’s main allegations were unfounded,” Zillow spokesman Will Lemke told Inman in an emailed statement.
“Given that their main claims have been dismissed, this victory marks a major step towards our victory. We look forward to litigating these remaining claims in court.” We believe our customers understand the two-tab system and are confident the evidence will show that REX’s business failed for reasons unrelated to Zillow.”
Zilly noted that the number of views from Zillow users did drop after the two-tab system went live, but did not comment on the impact this fact would have on REX’s business model.
“Whether this decline in views and the demise of REX’s business is directly due to Zillow’s introduction of the two-tab design is not an issue raised by REX’s motion for partial summary judgment, but rather an issue related to this fact. The matter must await trial,” Zilly wrote. .
Inman has reached out to REX for comment and will update this article when it receives a response.
Please email Andrea V. Brambilla.
