NAR throws its support behind MLSs in statement to feds 

Real estate industry trade associations — including the National Association of Realtors — are taking the opportunity to make their voices heard. 

In a May 21 letter to the U.S. Department of Justice and the Federal Trade Commission, NAR highlighted ways that multiple listing services benefit the real estate industry and consumers, while asking the federal agencies for guidance around data-sharing and rulemaking.

The letter was sent in response to the DOJ and FTC's request for public comment on business collaboration among competitors. The Council of Multiple Listing Services, which serves as a trade group for MLSs, also submitted a letter to the two agencies in support of the MLS system.

Without the MLS, consumers lose

In its letter, which echoed many of the pro-competitive positions CMLS shared in its submission, NAR said that MLSs provide sellers with more exposure and cut down on search costs for buyers.

"A future without the MLS would mean that the real estate market will likely be controlled by the largest brokers, portals, or technology companies which will limit competition and choices for consumers," according to the letter.

Collaboration — without coordination

After years of scrutiny from the DOJ, which has investigated NAR and other industry players for potential antitrust violations and anticompetitive practices, it's perhaps no surprise that the trade organization took pains to position the MLS system as pro-competitive. 

In its letter, NAR called on the agencies to not only reaffirm that stance, but to clarify "how trade association activities, including rulemaking and data-sharing, can support independent decision-making and competition without facilitating coordination among competitors."

"Clear guidance in these areas will support responsible collaboration, enable innovation, and reinforce competitive, transparent markets," according to the letter.

Reducing risk, maintaining relevance

NAR rules, and an alleged coordinated effort among the association, MLSs and brokerages to inflate commissions, were at the heart of dozens of lawsuits filed by both homebuyers and sellers in recent years. NAR has since been focused on risk mitigation, including updating its MLS handbook to shift more decision-making to the local level. 

The MLS system itself has become a divisive topic as debates over its role, relevance and authority have split industry leaders, particularly when it comes to pre-marketing, listing access and seller choice.

Other housing organizations make their pitch

In addition to NAR and CMLS, housing groups and rental trade organizations including the Manufactured Housing Institute, National Apartment Association, National Multifamily Housing Council, and the Council for Affordable and Rural Housing, weighed in with their own letter to the DOJ and FTC.

Among other requests, the housing groups asked the government agencies to provide "updated guidance regarding information sharing among competitors, including for purposes of industry benchmarking," which they said is a "valuable, procompetitive exercise."

"Clear guidance from the Agencies on how to engage in procompetitive benchmarking exercises will provide American businesses, including our organizations and our members, with the certainty they need to compete effectively in today's technology and data-driven economy," the letter stated. 

"It will also aid in the Agencies' efforts to enforce clear boundaries between procompetitive collaborations and collusive conduct causing anticompetitive harm."

Rental companies have had their own clashes with the government in recent years, particularly over certain property management software products that the government alleged resulted in price-fixing and inflated rents.