Key facts
- Compass CEO Robert Reffkin is demanding MLSs allow agents to publicly market office exclusives.
- Reffkin threatened antitrust lawsuits and class action litigation against MLSs that do not comply.
- Compass will sue MLSs that fine or punish agents for marketing office exclusives.
- Reffkin stated Compass will not settle these lawsuits.
- MLSs have until mid-October to change their rules or face litigation.
- Compass offered to release claims and provide data feeds to compliant MLSs.
Compass CEO Robert Reffkin has issued an ultimatum to Multiple Listing Services (MLSs) across the country, demanding they alter their rules to allow agents to publicly market office exclusives. Reffkin stated that if MLSs do not comply by mid-October, Compass will pursue antitrust lawsuits and potential class action litigation.
During a presentation at the Council of MLSs Open House conference, Reffkin argued that MLSs are unfairly controlling how agents and homeowners market properties, hindering competition and homeowner choice. He cited historical practices where MLSs did not restrict the public marketing of office exclusives and referenced the National Association of Realtors' (NAR) 1971 Antitrust Policy, which he believes MLSs have since violated.
Reffkin indicated that Compass has been attempting to work with MLSs for over two and a half years, but has found them too slow to adapt and protective of their existing competitors. He asserted that the MLS boards, composed of competitors, are restraining competition and new marketing ideas.
Compass is prepared to sue any MLS that fines or punishes agents for publicly marketing office exclusives, seeking triple damages and legal fees. Reffkin stated that Compass will not settle these lawsuits, viewing them as necessary to ensure agents can follow lawful marketing plans for their clients. He believes that if MLSs allow public marketing of office exclusives, they will continue to provide value through data sharing and memberships.
Reffkin set a deadline of October 6 for MLSs to agree to the proposed changes, offering to release all claims and provide data feeds of office exclusives in return. He acknowledged valuing MLSs as essential infrastructure for broker cooperation and data protection, but insisted that participant-only or member-only networks will foster growth and attract listings.