Zillow has been named in another antitrust lawsuit alleging steering in regards to the portal’s Premier agent programs and its Home Loans business.
Filed Jan. 16 in the Western District of Washington by Stephanie Dupuis, the owner of the Dupuis Team in Kitsap County, the complaint alleges that Zillow “abuses its monopoly” and puts pressure on agents to steer clients toward the portal’s products, violating both state and federal antitrust laws.
The lawsuit seeks relief for any “who are or who were enrolled in Zillow Group’s Premier, Preferred, or Flex Agent programs,” through damages, costs, attorney fees and “injunctive and equitable” relief.
The complaint goes into lengthy detail on Zillow Premier and Preferred Agent programs. It alleges that in real estate it is “impossible to do business without working with Zillow to at least some degree, because of their monopoly power,” and as such Dupuis and her team entered into an agreement to become Preferred Agents in conjunction with the Premier Agent program.
Dupuis and her team, as Preferred Agents, were subsequently charged what the complaint describes as a “hefty” cut of their commissions—40%—from leads and referrals from Zillow. This differs from how Premier agents pay up front for leads and referrals. The complaint adds that despite the “substraintial” nature of the commission cut, because of the portal’s alleged monopoly the leads and referrals from Zillow for Dupuis and her team are “essential.”
The complaint also explains that Zillow tracks its agents performances through its Follow Up Boss (CRM) system, and alleges that an “agent’s rating in Follow Up Boss is tied to the number of loan pre-approvals they secure through ZHL (Zillow Home Loans).” The complaint alleges that an agent needs a higher rating to be granted more referrals, and an agent with a low rating is at risk of being cut from the program, thereby exerting pressure on agents to “steer” clients toward Zillow Home Loans.
The complaint describes that this lawsuit aims to “hold Zillow accountable for its abuse of its monopoly to charge supracompetitive commissions and its illegal tying of its lending business to its services to agents.”
In a statement from a Zillow spokesperson, the portal said that complaint “tells a one‑sided story that does not reflect how Zillow Preferred partners serve buyers or how we work with real estate agents.”
“Consumers are always in control of which agent and lender they work with, and Zillow supports agents who deliver strong outcomes for buyers by sharing clear information and helping them understand what they can afford,” the statement continued. “Referral fees in the Zillow Preferred program are paid between businesses and are consistent with industry practices. These arrangements do not change the fees consumers can negotiate with their agent.”
Zillow added that the portal will “defend ourselves against these claims, while we stay focused on delivering a better real estate experience for buyers, sellers, renters and the professionals who serve them.”
This complaint is similar to the one made in the lawsuit Taylor v. Zillow, filed in the same district. The Taylor lawsuit, which was filed by consumers rather than real estate professionals like Dupuis, alleges Zillow uses hidden fees and exerts pressure on real estate professionals to “steer” consumers to its mortgage business.
The Taylor lawsuit was also consolidated with Armstrong v. Zillow back in December, another lawsuit in the same district filed by consumers that alleges Zillow exerts “enormous pressure” on real estate agents who use its popular Premier Agent or Flex programs to refer clients to Zillow Home Loans, preventing the use of outside lenders and resulting in borrowers paying more.
