MLSs strengthen competition, CMLS says in letter to FTC, DOJ
The trade organization highlighted MLSs as collaborative entities that benefit consumers and the real estate industry by sharing and protecting listing data.
Federal regulators continue to show interest in the real estate industry — and the Council of Multiple Listing Services (CMLS) has taken the opportunity to proactively share its stance on competition in a statement to two powerful government agencies.
'Collaboration can strengthen competition': According to a press release issued on Tuesday, CMLS submitted a comment letter to the Antitrust Division of the U.S. Department of Justice and the Federal Trade Commission — regulatory bodies that have launched high-profile investigations into real estate industry practices and players — in response to a call for public feedback on guidance for collaboration between competitors.
CMLS stressed the importance of multiple listing services as a collaborative resource for sharing accurate information, with Nicole Jensen — chair of CMLS and CEO of realMLS — calling MLSs "one of the most important examples of how collaboration can strengthen competition and benefit consumers."
"CMLS is proud to lead this effort on behalf of the MLS industry and ensure policymakers understand the essential role MLSs play in creating an open, transparent, and efficient housing market," Jensen said in a statement.
Protectors of data: CMLS argued in its letter that, by collecting and verifying listing data, MLSs help ensure that parties across the real estate transaction — consumers, agents, tech providers and more — can access reliable information about listings and recent sales.
The trade association highlighted five key ways in which MLSs benefit consumers and the market, including through 1) providing greater transparency on property information; 2) lowering search costs by rounding up information into one place; 3) allowing smaller brokerages access to the same market information as larger ones; 4) supporting real estate portals and other tech tools to enable the transaction; and 5) serving as an independent source for buyers, sellers and real estate professionals alike.
Keeping with 'reasonable' rules: A dividing line has been growing between MLSs across the country, with some adapting to demand from larger brokerages — like Compass — looking for more flexibility in the pre-marketing of listings. CMLS, however, suggested that the trade association had not changed its stance on the issue, which it made clear earlier this year in a public statement decrying selective marketing tactics.
The letter encouraged the DOJ and FTC to "recognize that reasonable MLS rules, including requirements for accurate, complete, and timely data, are essential to making the MLS system work," CMLS stated. It also reaffirmed the council's "role as the national voice for the MLS industry" and emphasized its commitment to educating policymakers on the benefits MLSs provide consumers and the industry.
A nod to advocacy efforts: CMLS added that it could not adequately advocate for MLSs without the help of Champions of the MLS, an organization that raises money to promote the value of MLSs through advocacy at local, state and national levels. Several MLSs have donated to the organization in the last year, according to its page on CMLS's website.
"MLSs are critical infrastructure for the housing market," Jensen said in a statement. "CMLS will continue working to ensure the value of MLS is understood, protected, and advanced."