Overview

• Compass filed its lawsuit in the Southern District of New York on June 23, claiming that Zillow’s policy bars listings from its platform if they appear elsewhere for more than 24 hours.
• The complaint seeks an injunction to prevent Zillow from enforcing the so-called “Zillow Ban” and asks for unspecified monetary damages.
• Compass contends its three-step listing strategy, used by nearly half of its sellers, is unfairly targeted by Zillow’s rule.
• Zillow has defended the requirement as necessary to ensure equal access to listings and maintain market transparency.
• The dispute unfolds against a backdrop of slow home sales and persistently high mortgage rates that have cooled U.S. housing activity.