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Sitzer/Burnett plaintiffs seek MLS data access in NAR settlement

Created at 23 Jul · 5:31 PM1 source↑ Market-relevant
IN SHORT

Plaintiffs in the Sitzer/Burnett commission lawsuit have asked a court to enforce a settlement provision requiring Multiple Listing Services (MLS) to share real estate listing and commission data with them. This follows a refusal by data provider FBS to hand over information without explicit MLS permission.

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Key Numbers

seven daysobjection window for MLSs

Who's Involved

Don Gibson
Plaintiff in Sitzer/Burnett and Gibson lawsuits
Lauren Criss
Plaintiff in Sitzer/Burnett lawsuit
John Meiners
Plaintiff in Sitzer/Burnett lawsuit
Daniel Umpa
Plaintiff in Sitzer/Burnett lawsuit
Financial Business Systems (FBS)
Third-party data provider supporting MLS software
Judge Stephen Bough
Judge overseeing Sitzer/Burnett and Gibson lawsuits
National Association of Realtors (NAR)
Subject of commission lawsuit settlement
Sitzer/Burnett plaintiffs seek MLS data access in NAR settlement

↳ Why This Matters

The plaintiffs' ability to access this data is crucial for enforcing the terms of the NAR settlement, which aims to reform real estate agent commission structures and potentially lower housing costs for consumers.

Key facts

  • Plaintiffs in the Sitzer/Burnett commission lawsuit are seeking court enforcement of a NAR settlement provision.
  • The provision requires Multiple Listing Services (MLS) that opted into the settlement to share real estate listing and commission data.
  • Data provider Financial Business Systems (FBS) has refused to release data without explicit permission from each MLS.
  • Plaintiffs propose a rule allowing MLSs seven days to object to data sharing, with non-objection implying consent.
  • Judge Stephen Bough is overseeing the motion for both the Sitzer/Burnett and Gibson lawsuits.

Plaintiffs in the Sitzer/Burnett commission lawsuit, along with copycat Gibson lawsuit plaintiffs, have filed motions seeking court intervention to access real estate listing and commission data from Multiple Listing Services (MLS). The plaintiffs argue that a provision within the National Association of Realtors' (NAR) settlement requires MLSs that opted in to share this data. The motion arises after Financial Business Systems (FBS), a provider of MLS software, refused to release the data, citing a need for explicit permission from each individual MLS. The plaintiffs claim FBS has not disclosed which MLSs are withholding permission. To address this, the plaintiffs are requesting the court to establish a new rule: a notice would be sent to all participating MLSs reminding them of their data-sharing obligation. Any MLS wishing to object would have seven days to notify the court, after which arguments would be heard. Failure to object within this period would automatically be considered consent for FBS and other third-party providers to share the data. Judge Stephen Bough is overseeing the case.

Frequently asked questions

The Sitzer/Burnett lawsuit, and similar cases, alleged that the real estate industry colluded to artificially inflate real estate agent commissions.

The plaintiffs need the data to verify compliance with the NAR settlement and to potentially demonstrate the impact of the settlement on commission structures.

FBS is a third-party data provider that supports MLS software. They are refusing to release data without explicit permission from each MLS, which is the current obstacle for the plaintiffs.

The plaintiffs propose a court-approved rule that would require MLSs to actively object to data sharing within seven days, otherwise their silence will be considered consent.

What Happens Next

01Judge Stephen Bough will rule on the plaintiffs' motion for data access.
02MLSs will have seven days to object to data sharing if the proposed rule is approved.
03FBS and other third-party providers may share data if no objection is filed.

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Cadence

How It Developed

Plaintiffs in the Sitzer/Burnett commission lawsuit filed motions seeking data access.
The plaintiffs are asking the court to enforce a NAR settlement provision requiring MLSs to share data.
Third-party data provider FBS refused to provide data, citing a need for explicit MLS permission.
Plaintiffs proposed a new rule for MLSs to object to data sharing within seven days.
The court has not yet ruled on the motion.
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Sources

T1
Sitzer/Burnett plaintiffs seek MLS data access in NAR settlementHousingWire

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