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Northwest Multiple Listing Service (NWMLS) has filed counterclaims in federal court against Compass, Inc., alleging that the brokerage’s “3-Phase Marketing Program” violates Washington’s Consumer Protection Act because it is a deceptive scheme designed to manipulate and hide critical data from the public. As set forth in the counterclaims, while Compass markets itself as an innovator by scaling “pocket listings”, it is actually operating a ‘closed door’ system that hurts both buyers and sellers to line its own corporate pockets.
By withholding inventory from consumers and competing brokers, NWMLS argues Compass is creating a ‘two-tier’ real estate marketplace: one for the Compass-represented insider, and another, depleted one for the general public.
This case is a battle for the future of the American real estate market.
The NWMLS Standard, Now Law in Washington
In its filing, NWMLS asserts that its transparency rules are not only pro-competitive and pro-consumer, but have now been codified by the Washington State Legislature. Senate Bill 6091, which takes effect this June, mandates that brokers market properties broadly to the public and all other brokers—the exact standard NWMLS has upheld for decades.
Allegations of Consumer Fraud and Data Manipulation
The counterclaims also detail how Compass’s marketing tactics fraudulently mislead the public by:
- Wiping the Slate Clean: Artificially ‘resetting’ days-on-market and price history to deceive buyers about a property’s true demand.
- The ‘Pocket Listing’ Tax: Limiting home visibility to exclusive internal groups, which NWMLS alleges suppresses the natural ‘public auction’ effect that fetches the highest price for sellers. As Compass’ partner Redfin has reported, homes sold off-market typically sell for significantly less than comparable homes listed on the MLS.
- Contractual Interference: NWMLS alleges Compass actively encouraged and incentivized its brokers to violate their professional agreements, prioritizing corporate growth over transparency and consumer’s interests.
“This case is about more than just MLS rules; it’s about putting people over corporations,” said NWMLS CEO Justin Haag. “We are standing up for the principle that every family has the right to see every home for sale, because housing data belongs in the sunlight, not in a private vault. It is time to make the housing market more equitable for everyone instead of simply making real estate CEOs richer.”
About Northwest Multiple Listing Service
As the leading resource for the region’s residential real estate industry, NWMLS provides valuable products and services, superior member support, and the most trusted, current residential property and listing information for real estate professionals. NWMLS is a broker-owned, not-for-profit organization with more than 2,400+ member offices and 30,000+ real estate brokers in Washington state and Oregon. NWMLS operates regional service centers throughout its coverage area, providing dedicated support to its members and fostering a robust, cooperative brokerage environment.
NWMLS offers a home listing search and comprehensive broker database at https://www.nwmls.com.