Austin, TX Board of Realtors illegally restrained competition

The Federal Trade Commission has charged the Austin, Texas Board of Realtors of illegally restraining competition by preventing consumers from putting certain home listings on public websites like Realtor.com. The charge against the 5,000 member MLS was prompted because of rules written that make home listings available through public website searches only if sellers are listed with a traditional full service agent.

Home sellers listed through alternative "for sale by owner" discount services like flat fee MLS and exclusive agency agreements were deprived of the exposure provided through Realtor.com, Austinhomesearch.com - a regionally searched site, and other brokerages websites. 

A settlement has been reached between the two parties with no formal acknowledgement by the Austin Board of any wrongdoing. John Roberti a former attorney with the FTC has said "this should serve as a wake-up call for the MLSs. If I were running an MLS with…I would spend some serious time thinking about whether this rule is necessary."

The fact that MLSs can even implement such rules that impede the growth of the industry, prevent competition, and reduce consumer trust of its members is shameful. The ongoing litigation due to the opposition of industry evolution by traditional members, associations, and NAR are not helping anyone. This double edged sword is only increasing consumer knowledge of industry practices, commission structure, and alternative flat fee models they are trying so desperately to "shut down."

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