Use of 'MLS' in a Realtor Web site: An ethical dilemma

Standard of Practice 12-12, a part of the National Association of Realtors Code of Ethics and Standards of Practice that was enacted in January, provides that Realtors "shall not use URLs or domain names that present less than a true picture, or register URLs or domain names which, if used, would present less than a true picture."

This standard falls under Article 12 in the Realtor code, which provides that Realtors "shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing and other representations." (See Inman News article.)

A case example for this new standard, provided by the National Association of Realtors in its 2008 Code of Ethics and Arbitration Manual, found that a Realtor who operated a real estate site named "northwoodsandlakesmls.com" was in violation of the code and standards because "a real estate-related URL that included the letters MLS would lead reasonable consumers to conclude that the Web site would be an MLS's, and not a broker's Web site."

The matter is up for local hearing panels to consider, in the event ethics complaints are filed against Realtors who operate sites with the word "MLS" in them or who are otherwise accused of using a misleading Web address.

There is an obvious, and in some cases bitter division among Realtors on the issue of whether Realtor agents and brokers should be free to market the MLS term in Web site addresses. Even before NAR adopted the new language into its code and standards, some MLSs took it upon themselves to craft restrictions on participants' use of MLS and related terms.

There was even a lawsuit in Minnesota over the issue. And NAR has adopted guidelines that MLSs can choose to adopt to pass restrictions on the use of MLS and related terms in Web site addresses, company names, e-mail addresses and other marketing materials.

The divisiveness of the issue is reflected in reader mail to Inman News. One reader wrote, "Using the term MLS in a domain name or Web site name is most certain unfair competition to other Realtors and is misleading to the public. It is very sly and its use improperly skews online search results."

And another wrote, "By restricting Realtors from owning MLS domains, NAR has opened a huge gash that will quickly be overrun by people they have no control over -- the very public they think they are protecting with this rule. I believe they have failed to think all the way through on this. Who would you rather have representing MLS domains? Realtors (who NAR can control) or anyone else (no control) who can be as unscrupulous as they wish?"

Is there any middle ground here?

There are other debates on the Web site naming issue, too: One reader told Inman News that there is an issue with agents using Web site addresses that suggest they work exclusively with buyers, while they actually work with both buyers and sellers. And there have been skirmishes over Realtors who use descriptive words with the "Realtor" term that have been deemed inappropriate by Realtor associations. A difference there is that NAR does own the trademark for "Realtor," but not for "MLS."

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