REX Continues To Fight For Consumers After Court’s Preliminary Injunction Ruling

Court allows the segregation rule for now, but REX’s challenge continues.

REX, the technology company resetting traditional real estate on behalf of consumers, expressed disappointment in today’s court decision denying the company’s request for a preliminary injunction to immediately stop Zillow from imposing the National Association of Realtors (NAR)’s segregation rule on consumers. Although the court did not halt the rule, REX’s effort to permanently stop the segregation of homes for sale continues.

“We are disappointed that consumers will continue to face the NAR segregation rule every time they visit Zillow,” said REX CEO Jack Ryan. “But this case is far from done. REX is going to continue to innovate for consumers as it builds its case against old industry rules that stifle consumer choice and competition. At a time when home prices are skyrocketing and the supply of homes for sale is at record lows, consumers deserve to see every home on the market. The segregation rule banishes homes that would save consumers thousands--if not tens of thousands of dollars--in fees. REX won’t stop until consumers are freed from this indefensible rule.”   

REX’s lawsuit challenges Zillow’s recent web display change, which the platform made to comply with the NAR’s segregation rule. Zillow's web display once aggregated all homes for sale on a single web display This changed after Zillow announced it was becoming a real estate broker and joining NAR and other broker associations. Since locking arms with legacy brokers, Zillow redesigned its website and placed homes listed by innovators under a deceptively labeled "Other listings" tab, which actual consumers call the "hidden" tab. 

Along with challenging NAR’s segregation rule, REX is contesting state rebate bans, which prevents the company from reducing real estate fees by giving rebates to cash-strapped home buyers. In both cases, REX is standing up for homebuyers, who are facing a housing market characterized by soaring prices and record low inventories. If REX is successful in both cases, home shoppers will have more choice and face fewer protectionist restrictions that make real estate commissions in the United States two to three times higher than around the world. 

Now that the court has ruled on REX’s request for a preliminary injunction, Zillow and NAR will have to respond to the claims that REX lays out against the segregation rule in the complaint that the company filed when it initiated this lawsuit.

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