"The Armstrong suit, which was first filed in early November, contained similar allegations, claiming that Zillow pressures agents in its Premier Agent and Flex lead programs to steer buyers to Zillow Home Loans for their purchase mortgage pre-approval. Allegedly, agents who sent more clients to Zillow's mortgage arm for their pre-approvals received extra or higher-quality leads in exchange. In an amended complaint filed in the consolidated lawsuit in early January, the plaintiffs again claimed that Zillow tricks consumers into using agents affiliated with Zillow through its Flex and Premier Agent programs, resulting in inflated home purchase prices."
"In its motion, Zillow argues that the plaintiffs' claims should be dismissed for a variety of reasons. Namely, Zillow feels that the plaintiffs never show how they were harmed by Zillow's contact agent button or the pre-approval letters, as Zillow notes in the filing that the buyers voluntarily worked with the agents and some of the plaintiffs did not use Zillow Home Loans for their mortgage. Zillow also claims that it clearly disclosed everything to consumers and that many of the plaintiffs' claims were filed after the one year deadline for federal RESPA claims."
Plaintiffs allege Zillow pressures agents in its Premier Agent and Flex programs to steer buyers to Zillow Home Loans for mortgage pre-approvals, rewarding agents who send more clients with extra or higher-quality leads. Plaintiffs claim Zillow tricks consumers into using Zillow-affiliated agents, resulting in inflated home purchase prices. Zillow seeks dismissal, arguing plaintiffs cannot show harm from the contact agent button or pre-approval letters and noting buyer choice and that some plaintiffs did not use Zillow Home Loans. Zillow asserts clear consumer disclosures, contends many claims missed the one-year RESPA deadline, and disputes RICO allegations.
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