It may be a new year, but the National Association of Realtors (NAR) is continuing to face legal challenges over its membership structure.
The newest suit was filed last week in the U.S. District Court for the Middle District of Louisiana by Carla DeYoung, Tammy Jo Williams, Darlene Currie and Carlos Alvarez. Each of the plaintiffs hold real estate licenses in Louisiana as either agents and/or appraisers.
The suit claims that the defendants have engaged in unlawful tying arrangements that compel membership to Realtor associations in order to gain access to MLS data.
“Such practices limit competition, harm consumers, and disproportionately affect all real estate professionals within the real estate industry,” the suit states. According to the suit, the local Realtor associations “require individuals to maintain membership with NAR, LRA, and a Realtor board within the state of Louisiana to qualify for membership in the MLS that serves the plaintiffs market area.”
The plaintiffs claim that the current membership structure does not provide all real estate licensees with equitable access to the data they need to do their job.
“By excluding non-association real estate professionals from cooperating 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 harm for non-member real estate professionals. As a result, the market is hindered, leading to fewer options for consumers and negatively affecting overall market dynamics.”
The complaint also views the practice as a barrier to fair business practices.
The plaintiffs also allege that the commission lawsuits, in which NAR was a defendant, created a “a breach of…