It's Settled: NAR-DOJ
On May 27, 2008, NAR and the U.S. Department of Justice reached a favorable settlement, concluding a two-year DOJ investigation (followed by two and a half years of litigation) regarding NAR's multiple listing policy as it pertained to the display of listings from the MLS on brokers' virtual office Web sites, or VOWs.
The Latest From NAR
The July 8, 2008 NAR President's Podcast features Vicki Cox Golder, 2008 NAR First Vice President, and Laurie Janik, NAR General Counsel, discussing NAR's settlement of the antitrust lawsuit brought by the DOJ. Watch the video, and please note an important update. Multiple listing Services have 90 days - not 180 days, as stated in the video - to adopt the revised VOW policy.
In a June 16 webcast, NAR General Counsel Laurie Janik provided an overview of NAR's settlement of the antitrust lawsuit brought by the U.S. Department of Justice. Access the webcast presentation (412K).
What the settlement accomplishes
The proposed terms (PDF 28K) are a win for NAR, REALTORS®, and consumers, and confirm that MLS members must be actively engaged in real estate brokerage (PDF 32K) by actually helping people buy or sell homes.
This will ensure that MLSs are used for what they were originally intended to do — to help real estate professionals find buyers for people who want to sell their homes. NAR has also agreed to adopt a revised Virtual Office Web site policy (PDF 36K) that NAR will request MLSs to adopt.
NAR settled with the DOJ without financial penalty or admission of guilt.
Why the MLS system works
The network of MLSs is the electronic nervous system for America’s residential real estate, and a powerful force for competition. Without it, smaller firms would be left at an immense competitive disadvantage.
MLSs enable small brokerages and new entrants to have the same access to listing information as large and established ones. They make it easy for sellers to reach buyers and for buyers to find the right property. The American MLS system is so successful that many foreign countries are now establishing MLS systems based on the U.S. model.
What the settlement means for:
Consumers: Consumers have always been able to access and view all publicly available listing information on the Web site of their broker of choice.
NAR members: The proposed order ensures that the online environment in which listings are displayed is the fairest possible. It preserves the right of seller clients and brokers to protect the proper display of the listings while ensuring the widest possible online display.
Broker-owners: The proposed order provides clear rules for operating a virtual office Web site (VOW) and preserves the right to determine whether or not listings are displayed on other brokers' Web sites. It also gives sellers the right to prohibit certain features, such as home-value estimates and blog posts, to accompany the display on VOWs.
Association and MLS executives: If a state or local association owns and operates its own MLS, NAR will request that the MLS adopt and implement the revised Virtual Office Web site (VOW) policy within 90 days of the effective date of the order — which we anticipate will be late summer.
More from NAR's Internal News Service: Special Report >
