September 22, 2025
Zillow (ZG.O), the largest U.S. online real estate portal, is facing a new proposed class action accusing the company of deceptively using property listings to steer home buyers to its network of affiliated agents.
The lawsuit, filed on Friday in Seattle, claims Zillow is misleading prospective buyers into contacting agents working with Zillow and not the agent who listed the home for sale.
The plaintiff, an Oregon resident, alleged Zillow’s practices violate a Washington state consumer protection law and a federal real estate law.
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The plaintiff seeks to represent at least tens of thousands of home buyers who used Zillow-affiliated agents since 2021.
According to the lawsuit, Zillow takes 40% of the commission from some of its agents, a cut that is hidden from the buyer and seller. The complaint said the alleged arrangement incentivizes agents to prioritize their commissions at all costs.
“Zillow’s scheme has the intent and the effect of unlawfully maintaining high and inflexible commissions that drive up the prices that buyers must pay,” the lawsuit said.
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For plaintiff: Steve Berman and Jerrod Patterson of Hagens Berman Sobol Shapiro, and Douglas McNamara and Theodore Leopold of Cohen Milstein Sellers & Toll