Key facts
- Compass has filed Code of Ethics complaints against Zillow in 26 states, 55 MLSs, and 30 Realtor associations.
- The complaints allege that Zillow has made false advertising claims.
- Compass claims Zillow prevents buyers from seeing listings by marking them as 'not for sale' when they are publicly available.
- Zillow counters that it displays blocked homes as 'not available' and suggests Compass is using the complaints as a tactic in an ongoing legal battle.
- Code of Ethics complaints are generally confidential, with enforcement handled by state and local Realtor associations.
- Common complaints involve Articles 1, 2, and 15 of the Code of Ethics, relating to client interests, misrepresentation, and false statements about competitors.
Compass International Holdings has filed Code of Ethics complaints against Zillow in 26 states, 55 Multiple Listing Services (MLSs), and 30 Realtor associations. The complaints allege that Zillow has engaged in false advertising by not prioritizing listings from sellers who initially market their homes privately before making them publicly available. Compass claims Zillow is preventing buyers from seeing these listings and, in some cases, displaying active public listings as 'not for sale.'
A Zillow spokesperson refuted these claims, stating that the company marks blocked homes as 'not available' rather than 'not for sale.' Zillow suggested that Compass's actions are a response to ongoing legal battles between the companies and that Compass is seeking additional venues to fight a losing legal battle. Zillow also asserted that Compass's business model depends on keeping listings off the public market initially, which limits reach, and that agents who list publicly from the start reach all buyers on Zillow.
Code of Ethics complaints are typically confidential, with information only shared if a matter is pushed to a regulatory body after a hearing or if a policy allows for publication under specific circumstances. Association leaders confirmed that confidentiality is a key aspect of the process, with only involved parties and necessary staff privy to the information. Even grievance committees may not know the outcome of a complaint.
The National Association of Realtors' Code of Ethics, enforced by state and local Realtor associations, consists of 17 articles covering duties to clients, the public, and other Realtors. Common complaints often cite Article 1 (protecting client interests while treating all parties honestly), Article 2 (avoiding misrepresentation of property facts), and Article 15 (not making false or misleading statements about competitors). Enforcement involves screening by a Grievance Committee, followed by a hearing panel if the complaint is deemed valid and within the 180-day window. Disciplinary actions can range from education and letters of reprimand to fines, suspension, or expulsion from the association. Appeals are possible if procedural issues or denial of due process occurred.