NAR is facing a new lawsuit over its membership structure in Louisiana
It may be a new year, but the National Association of Real Estate Agents (NAR) continues to face legal challenges regarding its membership structure.
The latest charges were filed last week in the United States District Court for the Middle District of Louisiana by Carla DeYoung, Tammy Jo Williams, Darlene Currie and Carlos Alvarez. Each of the plaintiffs holds real estate licenses in Louisiana as agents and/or appraisers.
The lawsuit alleges that the defendants engaged in unlawful tying agreements that enforce membership in broker associations to gain access to MLS data.
“Such practices restrict competition, harm consumers and disproportionately affect real estate professionals within the real estate industry,” the complaint says. According to the lawsuit, the local broker associations “require individuals to remain members of NAR, LRA and a broker board in the state of Louisiana in order to be eligible for membership in the MLS serving Plaintiffs’ market area.”
The plaintiffs allege that the current membership structure does not provide all real estate licensees with equal access to the data they need to do their jobs.
“By excluding non-association real estate professionals from working through the MLS system with association members, they have created an environment that favors certain real estate professionals over others,” the complaint states.
“This exclusion undermines the principle that all real estate professionals are independent contractors and limits opportunities for collaboration and has directly contributed to reputational damage for unaffiliated real estate professionals. As a result, the market is hampered, leading to fewer options for consumers and negatively impacting overall market dynamics.”
The complaint also views the practice as an obstacle to fair business practices.
The plaintiffs also allege that the commission’s lawsuits, in which NAR was a defendant, have created a “breach of trust that has caused widespread reputational damage and member dissatisfaction.” They claim they have experienced “severe emotional distress, including fear, frustration and a sense of betrayal as a result of NAR’s lack of transparency and unilateral decisions” in the trade group’s handling of the Sitzer/Burnett process and the eventual settlement agreement has dealt with. .
According to the complaint Louisiana Realtors lobbied the state government to implement laws that reflect the changes in business practices outlined in NAR’s settlement.
“These changes resulting from the NAR settlement have had a significant impact on all real estate professionals because they reflect the broader implications of the settlement and policy at the national level,” the complaint said. “As a result, these legislative actions have changed the operating landscape for brokers in Louisiana, impacting their practices and potentially their reputation within the industry.”
The plaintiffs ask the court to recognize that MLSs must operate independently of NAR policies, or policies similar to NAR’s, that “may perpetuate antitrust violations.”
Additionally, the plaintiffs seek a permanent injunction prohibiting the defendants from enforcing mandatory association memberships to access the MLS; damages for emotional distress and for the defendants’ alleged violations of antitrust law; restitution of “any compensation or payments unlawfully obtained from Plaintiffs as a result of the conduct of Defendants”; attorney fees and a jury trial.
The defendants did not return HousingWire‘s requests for comment.
This lawsuit joins others, including the Hardy case, filed in Michigan in August, and the Eytalis case filed in Texas in late November, with similar allegations.
Additionally, NAR is currently in the process of revoking its charter Phoenix real estate agents (PAR) due to the local association’s decision to offer an MLS Choice membership option. This allows real estate licensees to become members of PAR and access the local MLS without joining the Arizona Association of Realtors or NAR.
