Compass asks MLSs to block listing data from recruiting tools

Compass contends that while it supports MLS data sharing for cooperation, this data should not be sold to technology companies that then resell it for agent recruitment. The firm argues that such practices go beyond the MLS's primary function of facilitating real estate transactions and instead weaponize operational data against brokerages for competitor poaching.

The company has requested that MLSs confirm which data feeds are provided to these recruiting software firms, exclude Compass's data from these feeds, and clarify Compass's right as a participant broker to opt out of non-IDX/VOW vendor data distribution. Compass also noted that its franchise broker owners would have the option to opt into sending this data.

Compass stated that mandatory listing submission, when the MLS profits from selling that data to companies that recruit its agents, results in damage claims against the MLS. The firm has offered to release any claims against the MLSs if they agree to these requests and implement the changes within 30 days of receiving the letter.

This is not the first time Compass has engaged with MLSs on data practices. In March, Compass, along with Rocket and Redfin, sent a letter to MLSs advocating for policies that support pre-marketing and phased marketing distribution, and to stop penalizing agents for seller-directed marketing plans.