A new year brings new litigation over mandatory membership
Louisiana agents are the latest to sue NAR over membership rules that limit MLS access — and alleged reputational damage caused by scandals and lawsuits.
It may be a new year, but there seems to be no reprieve for the National Association of Realtors as it faces a new lawsuit over mandatory membership — and claims of reputational damage to the entire industry.
Louisiana agents sue NAR, local associations: A complaint was filed in U.S. District Court for the Middle District of Louisiana on Jan. 2 by two real estate agents and two brokers: Carla DeYoung, Tammy Jo Williams, Darlene Currie and Carlos Alvarez.
In addition to NAR, the lawsuit names the Louisiana Realtors Association, ROAM MLS, and several local associations: Greater Baton Rouge Association of Realtors, New Orleans Metropolitan Board of Realtors, Bayou Board of Realtors, Greater Central Louisiana Realtors Association and Realtor Association of Acadiana.
The plaintiffs allege that the groups have engaged in anticompetitive practices that include forcing agents to pay for three memberships in order to access multiple listing service data. Such restrictions on data usage create significant barriers to conducting business, they say in the complaint: "Without access to the market area MLS, agents cannot effectively analyze and disseminate this essential information for buyers and sellers."
NAR has damaged 'all real estate professionals': The plaintiffs also allege that the ongoing scandals and legal issues surrounding NAR, including sexual harassment allegations, extravagant spending and antitrust investigations, have harmed the reputation of the entire industry.
"The public's inability to differentiate between Realtors and non-Realtors ensures that this damage extends to all real estate professionals," the court filing states.
Along with changes to membership requirements, the plaintiffs are asking for treble damages of not less than $10 million.
What NAR had to say: In a statement shared with Real Estate News, a spokesperson for NAR said the organization will respond to the plaintiffs' specific claims in court. Regarding MLS data, the rep said NAR isn't the one making the rules: "NAR does not require that MLS access be limited to NAR members. MLSs are operated at the local level and each MLS determines individual participation requirements."
One of many active complaints: This Louisiana filing joins active cases in Texas, Michigan and Pennsylvania challenging mandatory membership rules. At the heart of the complaints is NAR's three-way agreement requiring agents to join local, state and national Realtor associations — a policy that has seen increasing pushback in recent months.