Redfin Freezes Private Listings Ban as Compass Pulls It Into Legal Battle With Zillow

Redfin has indefinitely paused its planned ban on privately marketed listings as the U.S. brokerage and discovery platform becomes embroiled in Compass’ ongoing legal fight with Zillow.

According to court filings reviewed by Inman, Compass has asked a judge to compel Redfin to hand over internal documents and communications tied to the proposed ban. The request forms part of Compass’s lawsuit against Zillow, in which the brokerage claims Zillow’s ban on privately marketed listings constitutes an anti-competitive restraint of trade.

Although Redfin is not a defendant in the case, its actions have become a focal point. The Seattle-based company announced in April that it would follow Zillow in blocking listings that had been publicly marketed for more than a day without being added to a multiple listing service (MLS). At the time, CEO Glenn Kelman said,

“Because we believe that all buyers should be able to see all listings, Redfin.com will not publish any listings that have been publicly marketed before being shared with all real estate websites via the MLS.”

The policy was slated to take effect in September, but never did. A Redfin spokesperson told Inman that the decision was linked to the company’s recent acquisition by Rocket Companies rather than any ongoing legal proceedings.

Compass claims Kelman and Compass CEO Robert Reffkin spoke shortly after Zillow announced its policy. According to Compass’s filing, Kelman acknowledged the rule would harm Compass but urged the brokerage to negotiate rather than fight. Compass refused and later filed suit.

Now, Compass is seeking drafts of Kelman’s blog post announcing Redfin’s proposed ban, arguing that the timing could show that Zillow colluded with other large portal operators in coming up with its listings ban.

“The fact that Redfin’s CEO drafted a blog post regarding the Zillow Ban before Zillow had publicly announced its policy is significant,” Compass’s attorneys wrote.

The court has not yet ruled on Compass’s motion. Redfin, meanwhile, remains quiet as its new owner, Rocket Companies, integrates its operations and decides whether the controversial policy will ever take effect.