A Portland homebuyer has filed a nationwide class-action lawsuit against Zillow, alleging the Seattle-based real estate giant uses deceptive practices that inflate commissions and home prices.
The lawsuit, filed Friday in U.S. District Court for the Western District of Washington, accuses Zillow of violating consumer protection laws, the federal Real Estate Settlement Procedures Act (RESPA), and unjust enrichment statutes.
Plaintiff Alucard Taylor, who purchased a home in Portland in July 2022, claims he was misled by Zillow’s website design.
According to the complaint, when Taylor clicked the “Contact Agent” button while browsing a home listing, he thought he was reaching the seller’s agent.
Instead, he was connected to a Zillow-affiliated buyer’s agent and asked to sign a “Touring Agreement.”
The document said the service was “free,” but Taylor later learned the agent received a commission — and if the agent was in Zillow’s “Flex” program, up to 40% of that commission went back to Zillow as a hidden fee.
The complaint describes this as “Hidden Zillow Fees” that are never disclosed to buyers or sellers.
Attorneys argue the practice amounts to an illegal kickback under RESPA because the company is paid without performing services connected to the closing of a property.
The lawsuit also takes aim at Zillow’s Listing Access Standards, which require sellers’ agents to post homes on Zillow within 24 hours of any public marketing — such as yard signs or social media posts — or face penalties.
Critics argue this policy forces agents and sellers to rely on Zillow’s platform, increasing the company’s dominance in online listings.
According to the filing, Zillow’s conduct keeps commissions artificially high, making homes more expensive for buyers.
The plaintiff alleges that if consumers had direct access to listing agents, they could negotiate lower prices and commissions.
Instead, the system encourages Zillow-affiliated agents to prioritize their earnings over clients’ interests.
The lawsuit seeks to represent all U.S. consumers who purchased a home listed on Zillow between Sept. 19, 2021, and the present, while being represented by a Zillow agent.
It requests damages, disgorgement of profits, injunctive relief, and attorneys’ fees.
Zillow has not yet filed a response in court.