REX Asks for a Retrial in Listings Display Lawsuit Against Zillow

November 3, 2023
Share this Post: 

The former discount brokerage REX has filed a motion for a retrial in its attempts to hold U.S. real estate portal Zillow accountable for what it feels is unfair listings display policy.

The controversy dates back to 2021 when Zillow switched from ingesting its listings using many feeds from individual MLSs to using a so-called 'IDX feed'.

While the switch to an IDX feed helped Zillow's back-end processes become more efficient it also came with a set of rules that the portal was obliged to adhere to as a non-listing member of the National Association of Realtors (NAR). Sites like Zillow that use the IDX feed must display NAR members' listings separate from non-members' listings.

The discount brokerage, which was not a member of the NAR, claimed that Zillow's policy of displaying listings from non-NAR affiliated brokerages on its 'Other' tab was unfair and led to a loss of leads which ultimately put REX out of business.

In September, after a lengthy timeline of preceding headlines, a jury decided that the portal giant was not liable or responsible for the damages sought by REX.

But in a document filed with the court on Tuesday, REX claims that it was prevented from presenting testimony about commissions that would have changed the outcome of the trial:

"Zillow was able to improperly escape liability for knowingly creating a deceptive and unfair web site by simply convincing the jury that it benefitted from doing so. Separately, REX seeks a new trial because the Court erroneously prohibited REX from presenting expert and other testimony that would have rebutted Zillow’s affirmative defense and also made other erroneous evidentiary rulings that prejudiced REX."

If REX is granted a retail and ultimately prevails, it could mean that Zillow and other U.S. real estate marketplace sites are forced to change how they display listings from sources such as discount brokerages and FSBO which do not pay MLS membership fees.

November 3, 2023
Edmund got to know the world of portals and marketplaces working at Mitula Group (which became Lifull Connect after the buyout in 2018). He worked directly with hundreds of portals across the world in his role in the content department for three and a half years before transferring to the SEO department to understand the inner workings of listings sites. He joined Online Marketplaces as Head of Content in March 2020.

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Funding Round Investment Capital Growth Raising 2
Hybr Raises £3.24M in Funding for First-Time Renters in the UK

Bristol-based Hybr has raised £3.24M to grow its aggregated platform for first-time renters. Investors include Blackwood Ventures, Adjuvo and individuals...

Read More
Shutterstock 1819494383
Grupo OLX Consolidates Portal CRMs on One App for Agents

Brazilian company Grupo OLX has introduced a new application tailored for its professional real estate clients that consolidates all its...

Read More
Uk Seaside Real Estate Op 1
'Material Information' Rules Laid Out For Property Listings on British Portals

The so-called 'material information' rules applying to listings on property portals in the UK have been revealed this week by...

Read More
Pisos Rental Report
Let There Be Light? Launches "Natural Light Simulator" has introduced a new tool that shows property searchers how many hours of natural light a property has before...

Read More

Editor's Pick