FTC orders MLS changes despite appeal
Appeals court to rule on Realcomp's refusal to publish certain listings
By Inman News, Tuesday, January 19, 2010.The Federal Trade Commission wants Detroit-area multiple listing service Realcomp II to begin transmitting "exclusive agency" property listings favored by discount brokers to public Web sites right away, rather than waiting for the outcome of Realcomp's legal challenge of an FTC order.
With financial backing from the National Association of Realtors, Realcomp has fought a three-year legal battle with the FTC over the MLS's refusal to transmit exclusive agency property listings to public Web sites including Realtor.com and the Realcomp's own public-facing site, MoveInMichigan.com.
The case is now before the Sixth Circuit Court of Appeals, after Realcomp challenged an FTC ruling, which found that the policy creates a "significant impediment" to consumers accessing listings represented by limited-service brokers, and helps protect full-service brokers from competition (see story).
After appealing the ruling, Realcomp asked the FTC to stay a Nov. 9 order requiring the MLS to begin transmitting exclusive-agency listings to public Web sites within 60 days.
Attorneys for Realcomp maintained they had established a "material likelihood" of success on appeal, and that a stay would "harm neither the public nor other parties." Realcomp, on the other hand, claims it will suffer "irreparable harm" if it is required to comply with the order.
In a Jan. 7 order denying Realcomp's motion for a stay, the FTC said Realcomp has not identified "a factual or legal issue that establishes a likelihood of success on appeal."
Realcomp argues that an FTC administrative law judge dismissed the government's complaint against Realcomp in December 2007. ...CONTINUED
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Submitted by Bruce Hahn on January 19, 2010 - 1:31pm.
American Homeowners Grassroots Alliance
Realcomp is wrong in saying that there is “free riding by home sellers who compete with Realcomp members”. Those home sellers are paying the price asked by Realcomp members for the services provided. Realcomp is denying its own members access to services that their membership entitles them.
The real purpose of the court challenge to the FTC Commissioners near-unanimous decision is obvious to the FTC, media observers, our organization, and every other consumer organization who has weighed in against Realcomp’s and similar actions by other MLSs. It’s not about helping consumers but about propping up commission rates and preventing competition from new business models that consumers have every right to use. Realcomp should stop violating U.S. antitrust laws. Their actions only reinforce negative public perceptions of real estate brokers, and in the end they will lose anyway, just like other MLSs who have tried the same thing.
Bruce Hahn
President
American Homeowners Grassroots Alliance
Submitted by Derek Eisenberg on January 21, 2010 - 6:35pm.
I think the real fear by Realcomp of complying with the order is the statistical data that will be produced by the compliance.
Real comps position is that publishing Exclusive Agency listings on Realtor.com and MoveInMichigan.com (the only two sites that brokers cannot get through independent syndicators) will atract buyers with ESP that can look at listings with no indication whether they are EA or ERS and somehow misteriously flag the EA listings, knock on the owner's door and buy direct.
Isn't that like finding a needle in a haystack? The data will reveal that there is no merit to Realcomp's claim. Realcomp is afraid that their compliance will doom their appeal by validating their illegitimacy.
Derek Eisenberg
http://www.mls2u.com