Zillow, the nation’s most visited real estate platform, faces a federal antitrust suit, congressional calls for regulatory scrutiny, and a competitor’s claim in court that it is a monopolist working against housing affordability.
Allegations and Lawsuits
The legal actions allege consumers are paying higher costs when buying or renting homes through Zillow. Home buyers suing in federal court, members of Congress, and the Federal Trade Commission (FTC) have all taken aim at the company’s practices.
Zillow and its subsidiaries capture 62% of real estate web traffic and average more than 221 million unique monthly users, making it a starting point for most American home buyers and renters.
FTC and State Lawsuits
The FTC and the attorneys general of Virginia, Arizona, Connecticut, New York, and Washington sued Zillow in September 2025, alleging the company paid Redfin $100 million to exit the multifamily rental advertising market and stop competing for up to nine years.
A federal class action filed in September 2025 alleges Zillow deceives buyers by routing them to company-affiliated agents when they click ‘Contact Agent’ or ‘Request a Tour’ buttons. The lawsuit alleges those agents pay Zillow up to 40% of their commissions, a fee never disclosed to buyers or sellers.
Congressional Involvement
Two members of Congress, U.S. Reps. Jennifer McClellan and Don Beyer, both Virginia Democrats, wrote to FTC Chairman Andrew Ferguson in May urging him to examine whether existing consumer protection authorities are sufficient to address online real estate platform practices.
Original reporting: KTBS 3 (Shreveport) — read the source article.