Zillow, Redfin strike deal with FTC to avoid trial 

Zillow and Redfin have reached a resolution in a lawsuit brought by the Federal Trade Commission (FTC) in September, the portals announced on Monday. The federal agency had sued the companies over their rental syndication agreement, with a trial in the case slated to begin today.

A 'resolution' with the FTC: Zillow and Redfin released press statements on Aug. 24 saying that they had come to a "resolution" with the FTC and the five state attorneys general who joined the case just a day after it was filed, which will allow their rental listings syndication agreement to remain in place — with conditions.

Through the partnership, listings syndication will continue with Zillow, Trulia, HotPads, Rent.com, ApartmentGuide and Redfin, the companies specified. However, beginning in 2027, Redfin and Zillow will also offer standalone multifamily advertising products.

A 'win' for the portals and consumers: Michael Sherman, general manager and senior vice president of Zillow Rentals, asserted that the partnership has already helped increase access to multifamily listings across platforms, "bringing more leads and leases to property managers and more options to renters."

Sherman called the partnership "pro-consumer" and "procompetitive," and now that it will be allowed to continue, he noted that the companies will be able to launch more solutions to support the marketplace.

A spokesperson for Redfin said the resolution with the FTC was "a significant win for Redfin and consumers across the country."

"Renting is the starting point for millions of people on the path to homeownership, and a foundational part of the Redfin journey," the spokesperson continued in an emailed statement. "This agreement allows us to maintain our rental partnership with Zillow through at least 2030 while building and investing in a standalone rentals business of our own."

What the case was about: In September 2025, the FTC sued Zillow and Redfin in response to a $100 million syndication agreement signed by the two portals in February of that year. The deal made Zillow the exclusive provider of multifamily rental listings on Redfin and its owned rental sites, Rent.com and ApartmentGuide.com. 

In the original complaint, the FTC argued that Zillow and Redfin's partnership removed an independent competitor in an advertising market that was already quite concentrated, "one that's critical for renters, property managers and the health of the overall U.S. housing market," Daniel Guarnera, director of the FTC's Bureau of Competition, said in a press release last fall.

The government also argued that the agreement violated federal antitrust laws.

A day after the FTC filed its lawsuit against the portals, attorneys general in Arizona, Connecticut, New York, Virginia and Washington also sued Zillow and Redfin over the syndication deal. Two months later, a judge consolidated the two cases into one.

Zillow and Redfin tried to get the case thrown out in a January motion to dismiss, but that motion was denied in May.

What the FTC said: In posts to X on Monday morning, FTC Chairman Andrew Ferguson said the federal agency achieved "a complete victory" through the settlement with the portals that "resolves all our competition concerns and restores competition in the housing rental market."

With the settlement, Ferguson added, Redfin will be an "independent competitor" through reinstating its internet listing services (ILS) on rentals, while maintaining access to Zillow's content, increasing the overall number of listings on Redfin. 

"And to ensure that Redfin can make up for lost time, Zillow is required to facilitate Redfin's employee recruitment [of Zillow employees, by removing noncompete and similar agreements] and customer contracting," Ferguson wrote. "And Redfin is required to invest millions of dollars annually in the business for years to come as it re-enters the market."

A threat of penalties, notification requirements: A press release issued by the FTC on Monday also elaborated that the settlement removed restrictions on Redfin's ability to compete independently against Zillow in the ILS advertising market. 

The settlement also places on Redfin monetary penalties in the event that the company fails "to follow through on the commitments to restart its ILS business within the prescribed timeframes and must provide regular updates to the FTC on its compliance with the order's requirements."

Both Zillow and Redfin must also notify the FTC before entering into any syndication agreement for multifamily rental properties "that contains a provision that restricts the ability of either party to compete for ILS customers."