Industry players allege in the new lawsuit that NAR and other defendants engage in anticompetitive conduct. They want reparations and an end to rules they don’t support.
Whether you’re refining your business model, mastering new technology, or finding a strategy to take advantage of the next market boom, Inman Connect New York prepares you to take a bold step. The next chapter is about to begin. Please join us. Join us and thousands of other real estate leaders from January 22-24, 2025.
A group of real estate professionals in Louisiana became the latest group to take issue with the National Association of Realtors this week, alleging in a new lawsuit that the association’s so-called tripartite agreement is anticompetitive.
Brokers Carla DeYoung and Carlos Alvarez, along with attorneys Tammy Jo Williams and Darlene Curry, filed the lawsuit Thursday in the U.S. District Court for the Middle District of Louisiana. Defendants include NAR, the Greater Baton Rouge Association of Realtors, the New Orleans Metropolitan Area Association of Realtors, and ROAM MLS.
The lawsuit accuses various defendants of imposing restrictions on data use that impair the agency’s ability to analyze the market. Also at issue is the requirement that agents become “members of three real estate agent associations as a condition of accessing the MLS,” according to the lawsuit’s complaint.
“These organizations impose regulations that Plaintiffs do not support, which are restraints of trade and violate Plaintiffs’ First Amendment right to freedom of association under the U.S. Constitution. ” the complaint continues.
News of the Louisiana lawsuit was first reported by Real Estate News.
The complaint goes on to say that the plaintiffs are “strongly opposed to forced membership in the NAR” due to a variety of factors, including “the 2020 Department of Justice settlement, the current investigation regarding clear cooperation policies, and numerous pending lawsuits.” I am against it.” NAR is also accused of having a “record of anti-competitive conduct.”
The plaintiffs ultimately allege that the defendants violated the Fair Housing Act, the Federal Trade Commission Act, the Sherman Antitrust Act, and other laws.
In a statement to Inman on Friday, NAR said it “will respond to Plaintiffs’ specific claims in court.”
“NAR does not require that access to MLS be limited to NAR members,” the statement added. “MLS operates at a local level, and each MLS determines individual participation requirements.”
The lawsuit is just the latest in a growing number of lawsuits taking aim at rules requiring agents to join NAR and local and state-level real estate agent associations. Previous lawsuits have been filed in California, Michigan, and Pennsylvania, among others.
At the same time, the Alabama Association of Realtors challenged the rule in response to concerns from its members, asking NAR to make membership voluntary in September. And just before Christmas, NAR and Phoenix Realtors engaged in a legal tug-of-war over MLS Choice, a subscription service that allows agents to access some MLS features without being a NAR member.
The growing backlash against the tripartite agreement comes after a tumultuous year in which the NAR resolved a major commission lawsuit, faced criticism from its members, and battled oversight over its governance and spending practices. is. The growing number of lawsuits surrounding the tripartite agreement suggests that, despite the commission’s settlement, the group’s days in court are far from over.
However, NAR CEO Nikia Wright expressed support for the tripartite agreement.
In the new case, the plaintiffs asked the court to prevent the defendants from enforcing mandatory membership rules and, among other things, “use control of MLS data to enforce anti-competitive tying agreements.” asking for it to stop. They are also seeking compensation and compensation for various economic damages.
Read the Louisiana complaint here (if the document doesn’t load, refresh the page).
Update: This article was updated after publication with a statement provided to Inman by NAR.
Email Jim Dalrymple II
