A class action lawsuit asserts that the home buying platform Zillow Inc. redirects users away from the real listing agent for properties and instead directs them to premier agents who pay a premium to Zillow to be listed as such.
Real estate salesperson/broker Max Brizer says he has been a listing agent for multiple properties that have been featured on Zillow’s website.
He claims that he was financially injured by Zillow’s practice of prompting customers to contact Zillow’s premier agents as opposed to a listing agent.
The Zillow listing agent class action lawsuit explains that Zillow gives real estate agents the option to pay monthly fees to be featured as premier agents on the site. Allegedly, these premier agents are featured more prominently on Zillow’s website than those agents who do not pay Zillow monthly fees to be featured.
One of the ways in which Zillow reportedly favors premier agents is by advertising them next to properties to which they have no connection. According to Brizer, the premier agents are featured next to the property, along with their picture and contact information in red. In contrast, the listing agent’s information is reportedly presented in grey, with no picture associated.
Additionally, the premier agent’s contact information is allegedly presented at the top of the page, while the listing agent’s information is presented much lower down — often so low on the page that site users have to scroll far down to find the listing agent’s contact information.
The Zillow class action lawsuit goes on to say that the website prominently prompts a customer to contact an agent but encourages customers to contact a premier agent instead of a listing agent – going so far as to redirect inquiries away from listing agents to premier agents.
Brizer says once a customer is put in contact with a premier agent, that agent has little to no interest in helping a customer purchase the property in which they were interested — instead, the premier agent steers customers towards purchasing properties that are more financially beneficial for the agent.
According to Brizer, Zillow does not inform site users that premier agents are not associated with the properties in which a user is interested. Allegedly, the set-up of the website leads consumers into thinking that the premier agent is connected to the property.
The Zillow listing class action lawsuit says that Zillow harms agents who do not pay to be premier agents by actively leading customers away from contacting listing agents, and making their contact information difficult to find and highly unappealing.
Earlier this month, Trulia faced similar claims in a realtor class action lawsuit.
Have you used Zillow during your home buying process? Let us know in the comment section below.
Brizer is represented by Spencer Sheehan of Sheehan & Associates PC, by Michael R. Reese of Reese LLP, and by James Chung.
The Zillow Premier Agent Class Action Lawsuit is Max Brizer v. Zillow Inc., Case No. 7:19-cv-11521, in the U.S. District Court for the Southern District of New York.
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