Louisiana agents most recently filed a lawsuit over NAR’s divisive three-way deal
Industry members argue in the new lawsuit that NAR and other defendants engaged in anticompetitive practices. They want refunds – and an end to rules they don’t support.
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A group of real estate professionals in Louisiana became the latest to take on the National Association of Realtors this week, arguing in a new lawsuit that the organization’s so-called three-way agreement is anticompetitive.
Realtors Carla DeYoung and Carlos Alvarez, along with agents Tammy Jo Williams and Darlene Currie, filed suit Thursday in the United States District Court for the Middle District of Louisiana. Defendants include NAR, the Greater Baton Rouge Association of Realtors, New Orleans Metropolitan Association of Realtors, ROAM MLS and others.
The lawsuit accuses the various defendants of imposing restrictions on data use, which in turn harms agents’ ability to conduct market analysis. And it objects to the requirement that agents join “three broker associations as a condition of entry into the MLS,” according to the complaint in the case.
“These associations impose rules that Plaintiffs do not support, which constitute restraints of trade and violate Plaintiffs’ First Amendment right to freedom of association under the United States Constitution,” the complaint continues.
News of the Louisiana lawsuit was first reported by Real estate news.
The complaint goes on to say that plaintiffs “strongly oppose” NAR’s mandatory membership due to a variety of factors, including “the 2020 DOJ settlement, the current Clear Cooperation Policy investigation, and numerous pending lawsuits.” NAR is also accused of having a “record of anticompetitive behavior.”
The plaintiffs ultimately allege that the defendants violated the Fair Housing Act, the Federal Trade Commission Act, the Sherman Antitrust Act, and other laws.
In a statement to Inman Friday, NAR said “we will respond to the plaintiff’s specific claims in court.”
“NAR does not require that MLS access be limited to NAR members,” the statement added. “MLSs are administered at the local level and each MLS determines individual eligibility requirements.”
The lawsuit is just the latest in a growing number of lawsuits targeting rules requiring agents to affiliate with NAR, as well as real estate agent associations at the local and state levels. Previous lawsuits were filed in California, Michigan and Pennsylvania, among others.
At the same time, the Alabama Association of Realtors also challenged the rule in response to its members’ concerns, urging NAR in September to make memberships optional. And just before Christmas, NAR and Phoenix Realtors were embroiled in a legal tug-of-war over MLS Choice, a subscription offering that gives agents access to certain MLS features without having to be a NAR member.
The growing resistance to the tripartite agreement comes after a tumultuous year for NAR, during which it settled major commission lawsuits, faced criticism from members and faced scrutiny over its governance and spending practices. The growing number of lawsuits over the three-party agreement indicates that the organization’s days in court, despite retainer settlements, are far from over.
However, NAR CEO Nykia Wright has expressed support for the three-way deal.
In the case of the new lawsuit, the plaintiffs want the court to, among other things, prevent the defendants from enforcing mandatory membership rules and to “cease and desist from using control over MLS data to enforce anticompetitive tie-in agreements.” They are also asking for restitution and an award for various financial damages.
Read the Louisiana complaint here (if the document doesn’t load, please refresh the page):
Update: This story has been updated after publication to include a statement provided by NAR to Inman.
Email Jim Dalrymple II
