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National group charges ‘Zestimates’ are misleading

Group calls for more disclosure of Zillow's home-value estimates

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A coalition of community groups has filed a complaint with the U.S. Federal Trade Commission charging that, a real estate Web site that provides home-value estimates, is misleading consumers and industry professionals about the accuracy of its automated tools. Officials at Zillow have countered that the accusations "are groundless," and the company clearly explains the role and accuracy of its estimates at its Web site. The National Community Reinvestment Coalition, a group that seeks to increase the flow of private capital into traditionally underserved communities, states in the complaint that its members are worried that Zillow and its affiliated companies may be "intentionally misleading consumers and real estate professionals to rely upon the accuracy of its valuation services" and alleges that "misrepresentations and unfair financial practices have caused, are causing and are likely to cause substantial injury to consumers who rely...