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Zillow Sued in Federal Class Action Over Alleged Steering and Hidden Flex Fees

Plaintiffs say hidden Flex fees with steering on Zillow inflated prices.

Overview

  • Filed Friday in U.S. District Court in Seattle by homebuyer Alucard Taylor, the suit names multiple Zillow entities and seeks nationwide class status, treble damages, disgorgement and an injunction.
  • The complaint alleges Zillow’s “Contact Agent” and “Request a Tour” buttons route buyers to Zillow‑affiliated agents and prompt a Touring Agreement that describes services as free.
  • Plaintiffs say Zillow’s Flex agents must remit up to 40% of their commissions to the company without disclosure to buyers or sellers, which they argue inflates purchase prices.
  • The filing challenges a listing rule requiring properties to appear on Zillow within one business day of other public advertising, alleging enforcement up to bans with reinstatement by choosing a Zillow agent.
  • Citing Zillow investor materials, the suit points to dominant search share and more than $2 billion in annual lead‑sales revenue to argue platform power, and Zillow had not commented at publication.