Enforcing Antitrust Laws in the Real Estate Industry

The Division is protecting consumers through its litigation and investigative efforts. This page describes the Division’s enforcement efforts in selected states.

On this page:

• Litigation
  • U.S. v. National Association of Realtors
  • U.S. v. Kentucky Real Estate Commission
• Investigations
• West Virginia Rebate Ban
• South Dakota Rebate Ban

Litigation

U.S. v. National Association of Realtors

Issue: The Division is challenging NAR’s MLS rules that inhibit competition from Internet-based brokers. These rules include:

• Rules that prevent brokers from using the Internet to provide to customers the same information brokers are permitted to deliver by more traditional methods.
• Rules that restrict specialization in providing brokerage services to buyers.
• Rules that prohibit Internet-based brokers, but no others, from referring customers to other brokers for compensation.

Case filings: U.S. v. National Association of Realtors

Court decision: Memorandum Opinion and Order Denying Defendant's Motion to Dismiss Complaint of the United States (11/27/2006)

Press releases:

• Department of Justice Amends Antitrust Lawsuit Against National Association of Realtors (10/04/2005)
• Justice Department Sues National Association of Realtors for Limiting Competition Among Real Estate Brokers (09/08/2005)

U.S. v. Kentucky Real Estate Commission

Issue: The Division challenged regulations that prohibited Kentucky real estate brokers from offering rebates and other inducements to consumers. The United States dismissed its lawsuit after the Kentucky Real Estate Commission agreed to rescind its rebate ban.

Case filings: U.S. v. Kentucky Real Estate Commission

Press releases:

• Justice Department Reaches Settlement with Kentucky Real Estate Commission (07/13/2005)
• Justice Department Sues Kentucky Real Estate Commission for Limiting Competition Among Real Estate Brokers (03/21/2005)

Investigations

West Virginia Rebate Ban

Issue: The Division investigated regulations that prohibited West Virginia brokers from offering rebates and other inducements to consumers. The West Virginia Real Estate Commission repealed the regulation.

Press release: West Virginia Real Estate Commission Permits Real Estate Brokers to Offer Rebates and Other Discounts (05/04/2006)

South Dakota Rebate Ban

Issue: The Division investigated rulings by the South Dakota Real Estate Commission that prohibited brokers in that state from offering rebates and other inducements to consumers. The South Dakota Real Estate Commission repealed the regulation.

Press release: South Dakota Real Estate Commission Permits Real Estate Brokers to Offer Rebates and Inducements (08/17/2005)

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