Two U.S. lawmakers are urging the Federal Trade Commission to examine the practices of online real estate marketplaces.
Democratic Reps. Jennifer McClellan and Don Beyer wrote in a letter to FTC chairman Andrew Ferguson that platforms that steer prospective homebuyers toward buyer agents in exchange for a referral fee may be contributing to the unaffordability issues plaguing the housing market.
The congresspeople did not specify any platform by name, but claimed that features like “contact agent” or “request tour” buttons, which are found on listings of platforms like Zillow, can mislead buyers, resulting in higher transaction costs or less favorable financial terms. (The letter also cited a lawsuit filed last year by consumer Alucard Taylor against Zillow over its referral fee practice, which was later merged with another consumer class-action complaint.)
“The skyrocketing cost of living in this country has only put home ownership further and further out of reach for the American people,” McClellan said in a statement provided to The Real Deal. “Deceptive and non-transparent advertising practices in the online real estate marketplace make this worse by creating greater confusion, frustration or disillusionment with the process.”
The letter calls for the FTC to “remain attentive, study developments in the online real estate space, and consider ways to promote greater transparency and accountability in practices that may impact consumers’ financial well-being.”
The letter comes as residential real estate’s biggest players have faced increasing public and regulatory scrutiny amid industry consolidation and a housing market bogged down by high interest rates and a lack of affordable inventory. As of the end of 2025, the average American needed to earn over $111,000 to afford a median-priced home, more than $25,000 above the actual average income, according to a February report from Redfin.
Compass and Zillow — the largest brokerage and largest real estate portal in the country, respectively — have borne the brunt of public criticism, for different reasons.
Last year, plaintiffs filed two separate lawsuits claiming that Zillow steers consumers to use its Flex and Premier Agent programs leading to inflated home purchase prices. (Zillow filed a motion in February to dismiss the consolidated lawsuit, and followed up on the motion earlier this week.)
In December, Democratic Sens. Elizabeth Warren and Ron Wyden urged antitrust officials to scrutinize the $1.6 billion merger between Compass and Anywhere Real Estate that they claimed could limit transparency in the residential housing market and potentially inflate broker fees for homebuyers.
The deal closed the next month after the Department of Justice declined to conduct an extended review. The Wall Street Journal reported that Compass hired Mike Davis, a lawyer affiliated with President Donald Trump known for speeding along mergers, who effectively lobbied Deputy Attorney General Todd Blanche to shut down any interest in an extended review.
Although the deal evaded federal regulatory inquiries, The Real Deal reported this week that the New York Attorney General’s office opened up a probe to investigate Compass’ footprint in the New York market.
Compass is also battling an antitrust lawsuit filed last month by Zillow. The portal alleged that Compass and the Chicago-area listing service, Midwest Real Estate Data, conspired to force Zillow into displaying listings that are first marketed off its website, in violation of Zillow’s newly-instated listing policy.
Compass and MRED shut off Zillow’s access to listings in Chicago the following week, before a judge in the case ruled Zillow’s access needed to be reinstated for the duration of the case.
Read more
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Senators urge antitrust scrutiny of Compass-Anywhere $1.6B Deal
Reactions to Zillow-MRED lawsuit expose fault lines in fight over listing data
