PLS, Umansky ready for a rematch with NAR in refiled lawsuit
The case involving Clear Cooperation and Mauricio Umansky’s pocket listings network has been revived as The Agency founder makes good on his threat to sue NAR.
Key points:
- The 2020 antitrust case against NAR was withdrawn in January 2024, but Umansky’s PLS.com has restarted the fight.
- The lawsuit takes aim at NAR’s Clear Cooperation Policy, saying homeowners should have freedom of choice when it comes to marketing a home.
- It follows two recent lawsuits filed by Compass over the CCP and private listings. All three suits allege anticompetitive behavior on the part of NAR and others.
NAR's Clear Cooperation Policy is back in the courts as brokerage leader and reality TV star Mauricio Umansky once again takes direct aim at listing rules.
In a complaint refiled July 1, ThePLS.com — a pocket listings website co-founded by Umansky — has reopened its federal antitrust lawsuit against the National Association of Realtors.
How we got here
The case was originally filed in 2020, targeting three large MLSs along with NAR. California Regional MLS, Bright MLS and Chicago-based MRED settled in January 2024, and the following day, PLS withdrew its case against NAR but did so without prejudice, meaning it could be filed again.
In September, Umansky threatened to revive the case because "the homeowner should have the freedom to choose how he or she wants to market their home for sale, period, end of story," he said on Instagram, adding, "I am looking forward to refiling the PLS lawsuit against NAR."
Umansky is also the CEO and founder of The Agency and has been on a variety of television shows, including starring in "Buying Beverly Hills" on Netflix. He is not named as a plaintiff in the case.
Joining Compass' battle over listing rules
This is the latest in a string of recent lawsuits over private listings and rules around pre-marketing homes. Compass, led by private listings champion Robert Reffkin, has filed separate lawsuits against Zillow and the Northwest Multiple Listing Service over their listings policies, alleging that they are anticompetitive.
Zillow announced in May that it would block listings that were publicly marketed but not widely available via the MLS — a policy it began enforcing June 30 — and NWMLS prohibits pre-marketing and office exclusives, cornerstones of Compass' 3-phased marketing strategy.
The U.S. Department of Justice has also looked into whether the CCP is anticompetitive but has not officially taken a position.
PLS says it was 'a competitive threat' to NAR, MLSs
In court documents, PLS alleges that NAR's policy forced the startup out of the market by "preventing it from attracting a critical mass of listings sufficient to compete effectively" because PLS posed a threat.
"The surge in consumer demand for pocket listings, and the rise of a listing network to market pocket listings effectively, was a competitive threat to the viability of the NAR-affiliated MLS system. These market changes also threatened NAR's ability to control competition in the residential real estate brokerage industry" — which allegedly prompted NAR to create the CCP — the court documents stated. The company is seeking triple damages under antitrust law.
The National Association of Realtors previously suggested it was ready for this eventuality, noting at the time of the original lawsuit's 2024 dismissal, "If PLS chooses to reengage in litigation, we are prepared to address their claims."
In a statement shared on July 1, NAR said it "will respond directly to the plaintiff's claims in court," adding, "the Clear Cooperation Policy promotes transparency and competition in the real estate marketplace while still providing home sellers and their agents the option to list their property as an office exclusive."
A divisive policy
Clear Cooperation has bred controversy since the policy — which requires Realtor-affiliated MLSs to publish listings within one business day of the property being publicly marketed — was passed in 2019. NAR made a key addition to the rule earlier this year by adding a "delayed marketing" option for home sellers.
In a news release, PLS said the lawsuit is about defending innovation and consumer choice in a market "long dominated by entrenched gatekeepers."
"We created a platform that responded to growing demand for privacy, flexibility, and discretion — particularly in highly-competitive and high-profile markets — and were met with coordinated resistance from an organization with a vested interest in preserving the status quo," according to the company statement.