Compass International Holdings CEO Robert Reffkin announced plans to file a federal antitrust lawsuit against California Regional MLS (CRMLS) to stop the organization from fining agents for publicly marketing office exclusive listings. Reffkin claims CRMLS policies, which changed in 2019, unfairly restrict marketing practices that were previously allowed.
The dispute highlights a significant conflict between large brokerages seeking greater marketing flexibility and MLS organizations aiming to maintain cooperative data-sharing principles, potentially impacting how real estate listings are marketed and accessed across the industry.
Compass International Holdings is preparing to file a federal antitrust lawsuit against California Regional MLS (CRMLS), accusing the organization of unfairly fining agents for publicly marketing office exclusive listings. Robert Reffkin, CEO of Compass, announced the impending legal action on LinkedIn, stating that CRMLS's policies, which he claims changed in 2019, unfairly restrict marketing practices that were previously permitted.
Reffkin asserted that CRMLS will not be able to defend its policies by claiming they protect transparency, as the lawsuit specifically targets the fines for public marketing. He argued that CRMLS is primarily protecting its own interests. Reffkin pointed to a 2018 CRMLS form that allowed sellers to exclude listings from the MLS while still marketing them publicly, suggesting that this practice was later prohibited following a 2019 MLS Roundtable discussion and the "MLS Agenda 2022" report, which identified "off-MLS home marketing" as a challenge.
In response, CRMLS CEO Art Carter stated that the MLS has a responsibility to protect the cooperative marketplace and that principles of equal access, transparency, and cooperation are fundamental to the MLS's value. CRMLS had previously rejected Compass's demands to cease enforcing rules on the submission of publicly marketed listings to the MLS. The organization characterized Compass's demands as an attempt to "benefit from the cooperative sharing of information while publicly marketing for-sale properties to benefit themselves, while hiding these same homes from the other participants of the cooperative," calling it free riding that could undermine the MLS system. CRMLS also announced the creation of an MLS Cooperation Legal Defense Fund to support legal efforts defending cooperation rules.
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