Compass International Holdings is asking MLS organizations to prevent its listing and agent data from being used by third-party technology companies whose products help competing brokerages recruit agents.
In a letter obtained by Inman, Compass raised concerns about MLS data supplied to vendors including Courted, BrokerMetrics and Brokerkit, saying the companies package agent production, listing, transaction and roster data into products that brokerages can use for recruiting.
The letter of concern was sent by Victor Lund, a managing partner at industry consulting firm WAV Group. A Compass spokesperson confirmed Friday that the email is authentic and that Lund is temporarily working under contract with Compass while the company’s industry relations lead, Caitlin McCrory, is on maternity leave.
It was not immediately clear how many MLS organizations received the letter. Compass did not provide additional information Friday about what prompted the outreach.
“While we support MLS data sharing for cooperation, the data we provide the MLS for cooperation purposes should not be sold to a technology company like Courted that in turn further sells that data with their agent recruitment technology,” the letter states. “The MLS exists to facilitate real estate transactions — not to weaponize our operational data against us for competitor poaching.”
According to the letter, Compass is asking MLSs to identify the specific data feeds they provide to Courted, Brokerkit, BrokerMetrics and other technology companies that use the brokerage’s data in recruiting products. In the letter, the company also demands that data tied to Compass International Holdings brands be excluded from feeds used by recruiting software, while giving affiliated franchise broker owners the ability to opt in.
Compass’ messaging also asks MLSs to clarify whether participant brokers have a right to opt out of vendor data distribution outside of traditional internet data exchange and virtual office website uses.
The request raises a broader question about how information submitted to an MLS for brokerage cooperation can subsequently be licensed and used by third-party technology companies.
Compass argues in the letter that mandatory submission of listing data does not mean brokerages should be required to allow that same information to be sold for use in recruiting products.
The request may also carry potential legal implications. Compass wrote that requiring brokers to submit listings to an MLS while allowing the MLS to profit from licensing agent-level data to recruiting technology companies “results in damage claims to the MLS.”
Compass asked that its data be excluded from feeds powering competitive recruiting products and said it would release any related claims if MLSs agreed to the request and implemented the changes within 30 days.
