US Court of Appeals agrees with ban on MLSs hiding discounter listings Realcomp Realtor Case where Albert Hepp testified

Quick review of Realcomp MLS Case:

• An MLS creates rules that hide discounter/innovator brokers' listings,
• the US Federal Trade Commission (FTC) investigates,
• the MLS (called Realcomp) refuses to change rule,
• the FTC sues the MLS for restraint of competition,
• the MLS gets NAR funding to fight the FTC,
• the Case is tried in Washington, DC, Albert Hepp testifies as a flat fee MLS Broker, then
• the MLS wins the FTC case.

[Booing, hissing]

• Then, the FTC appeals,
• the FTC wins the appeal in a unanimous 4-0 ruling,
• the MLS/NAR appeals to the US Court of Appeals (6th District),
• the FTC wins again today as the Appellate Court upholds the appeal.
• My summary of the verdict: "Thou shall not hide listings."

[Applause]

The consumer wins. Yeah!

Right from the opinion:

Under a full rule-of-reason analysis, we conclude that substantial evidence supports the Commission’s findings that: 1) Realcomp’s website policy gave rise to potential genuine adverse effects on competition due to Realcomp’s substantial market power and the website policy’s anticompetitive nature; 2) the website policy in fact caused actual anticompetitive effects; and 3) Realcomp’s proffered procompetitive justifications were insufficient to overcome a prima facie case of adverse impact. These findings establish that Realcomp’s website policy unreasonably restrained competition in the market for the provision of residential real-estate-brokerage services in southeastern Michigan and the Realcomp MLS area. Therefore, we DENY Realcomp’s petition for review. [We added the bold]

Log in and search Realcomp for a more detailed history of this case and Albert Hepp's involvement in the case.

More to come...