Zillow Hit with Class-Action Over Agent Commissions
Micah Tinkler
Monday, September 22, 2025
A new class-action accuses Zillow of steering buyers to affiliated agents, hiding commission fees, and raising costs for consumers.
Background of the Lawsuit
On September 13, 2025, a class-action lawsuit was filed in the U.S. District Court in Seattle against Zillow.
The complaint accuses Zillow of deceiving consumers through its Premier Agent and Flex programs, which allegedly inflate home prices by steering buyers to Zillow-affiliated agents.
Case:
Alucard Taylor v. Zillow Group Inc.
Plaintiff:
- Alucard Taylor, Portland, Oregon homebuyer (2022 purchase)
Defendant:
Key Allegations:
- Deceptive Referrals: Zillow’s “contact agent” button routes buyers to Zillow-affiliated agents, not listing agents.
- Misleading Touring Agreement: Buyers are told agent services are “free,” but commissions are paid if the sale closes.
- Hidden Fees: Flex agents must pay Zillow up to 40% of their commission, a cost undisclosed to buyers or sellers.
- Higher Home Prices: Plaintiffs argue commissions reduce buyers’ ability to negotiate and keep prices inflated.
- Market Control: Zillow requires listings to appear on its platform within one business day, increasing its dominance.
Legal basis:
- Violation of the Washington Consumer Protection Act.
- Violation of the Real Estate Settlement Procedures Act (RESPA).
- Unjust enrichment through hidden fees.
Relief sought:
- Class-action status for U.S. consumers who purchased homes with Zillow-affiliated agents.
- Treble damages.
- Disgorgement of profits.
- Injunction against the practices.
Context:
- The suit is led by Hagens Berman Sobol Shapiro LLP, the same firm behind the Moehrl commission case.
- The firm announced in August that it was investigating “deceptive practices” in real estate transactions nationwide.
Zillow has not commented on the case.
originally posted by Houzeo |
