Two Louisiana real estate agents and two brokers have filed a federal lawsuit against several real estate associations, including the National Association of Realtors (NAR) and Louisiana Realtors Association (LRA), accusing them of engaging in anti-competitive practices.
The practices have caused the plaintiffs “anxiety, stress and emotional turmoil as a result of reputational harm,” leading to a request for damages for emotional distress and at least $10 million in treble damages.
Brokers Carla DeYoung and Carlos Alvarez, along with agents Tammy Jo Williams and Darlene Currie. filed the complaint on Jan. 2 in the Middle District of Louisiana. They allege the defendants require membership in NAR, LRA and another Realtor board within the state in order to access Multiple Listing Service (MLS) – a condition that the plaintiffs say burdens agents and brokers and limits competition.
“Plaintiff alleges that the defendants have engaged in anti-competitive practices, including unlawful tying arrangements that compel membership in Realtor organizations as a condition for accessing MLS … data,” the lawsuit states. “Such practices limit competition, harm consumers and disproportionately affect all real estate professionals within the real estate industry.”
The plaintiffs allege the defendants, including the Greater Baton Rouge Association of Realtors Inc., New Orleans Metropolitan Association of Realtors Inc. and the Bayou Board of Realtors Inc., are violating the Sherman Antitrust Act, Clayton Act, Federal Trade Commission Act and a Louisiana antitrust law, as well as the plaintiffs’ right to freedom of association under the First Amendment.
Access to MLS data is crucial for those in the industry who are serving consumers looking to purchase homes, according to the complaint. The home data provided by a local MLS is not available on other platforms, the lawsuit states.
“The widely publicized scandals surrounding the NAR – including sexual harassment allegations, extravagant spending and antitrust violations … – have irreparably harmed the reputation of the entire real estate industry,” the lawsuit says. “The public's inability to differentiate between Realtors and non-Realtors ensures that this damage extends to all real estate professionals.”
LRA did not respond to a request for comment, but NAR disagreed with some of the plaintiffs’ allegations.
“We will respond to the plaintiff’s specific claims in court,” an NAR spokesperson told the Louisiana Record in an email. “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.”
But the lawsuit contends that the defendants mandate membership in three Realtor associations in order to obtain MLS access.
“These associations impose rules that the plaintiffs do not support, which constitute restraints of trade and violate the plaintiffs' First Amendment right to freedom of association under the United States Constitution,” the complaint says.
The plaintiffs also allege that the defendants’ practices create occupational barriers that disproportionately affect minority communities in Louisiana and, in turn, violate the federal Fair Housing Act.
They are asking the federal court for a permanent injunction to stop the defendants from enforcing policies that tie association memberships and access to MLS data, according to the lawsuit.