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Zillow Sued in Class Action Alleging Hidden Agent Fees and Deceptive Routing

Zillow rejects allegations that its consumer flows mislead buyers in a Washington federal case.

Overview

  • The Sept. 19 filing in the U.S. District Court for the Western District of Washington seeks nationwide class status for buyers from Sept. 19, 2021 to the present.
  • Plaintiff Alucard Taylor says he clicked Zillow’s “contact agent” on a Portland listing in 2022 expecting the listing agent but was routed to a Zillow-affiliated buyer’s agent.
  • The complaint challenges Zillow’s Touring Agreement as misleading for describing agent services as “free” while commissions are still paid if a sale closes.
  • Allegations include that Flex agents must remit up to 40% of their commission to Zillow without disclosure to buyers or sellers, which the suit says helps keep commissions high.
  • Claims are brought under Washington’s Consumer Protection Act and the federal RESPA, with requested remedies including damages, disgorgement, and injunctions; Zillow denies wrongdoing and says it will vigorously defend itself.