Zillow Resolves FTC Lawsuit over Redfin Rentals Syndication

Zillow has today announced a resolution with the Federal Trade Commission (FTC) and five states regarding its multifamily rental listings syndication agreement with Redfin.

The FTC's lawsuit, launched in September 2025, accused Zillow of making an illegal $100 million payment to Redfin in an agreement that would effectively eliminate Redfin as a competitor to Zillow in the rentals space for the best part of a decade.

The case was set to go to trial in August after courts declined the FTC's request for an expedited judgment.

However, Zillow will see today's judgment as a major win, achieved without the public scrutiny of a trial, after reaching a resolution that will allow it to continue its syndication partnership with Redfin across both companies' portals, in addition to Trulia, HotPads, Rent.com, and ApartmentGuide.

Nevertheless, the resolution is not unconditional. Zillow and Redfin will pay for the FTC's legal costs, among several other caveats.

Zillow and Redfin must eliminate any provision that prevents Redfin from owning and operating a rental advertising service, and must not enter into any new agreement that would prevent Redfin from reasonably competing with Zillow on rentals, nor incentivise consumers away from competing for business.

Furthermore, both companies may not enter any new exclusive syndication agreements for rental listings with fewer than 25 units. Redfin and Zillow will also enter an employee transfer agreement for suitable roles.

Redfin has been ordered to relaunch a standalone rentals business within six months, at a reasonable scale and with advertising and marketing obligations. Additionally, Zillow and Redfin will offer standalone multifamily advertising products starting in 2027.

Finally, both Zillow and Redfin are precluded from further litigation in the matter, except to enforce stipulations agreed upon as part of the resolution.

Michael Sherman, general manager and SVP of Zillow Rentals, said:

"This resolution is a win for renters and multifamily housing providers. Our syndication partnership with Redfin has already expanded access to multifamily listings across multiple platforms, bringing more leads and leases to property managers and more options to renters. Now, with the ability to offer more multifamily advertising solutions in addition to the existing partnership, we can do even more to support the marketplace. The data shows the pro-consumer and procompetitive benefits of this partnership. This positive resolution enables us to keep our energy on innovating for renters and property managers, and ultimately making renting easier, more affordable and better for everyone."

It's another major legal win for Zillow after the Alucard Taylor lawsuit was dismissed in July. Nevertheless, other legal headaches remain, including a copyright infringement case against CoStar Group.