FTC settles with Zillow, Redfin; requires Redfin to restart rental listings business

The U.S. Federal Trade Commission (FTC) has reached a settlement with Zillow and Redfin to resolve claims that the companies entered into an illegal agreement to suppress competition in online rental advertising.

Key Details of the Settlement

The FTC announced Monday that it filed a proposed order with the U.S. District Court for the Eastern District of Virginia. The settlement requires Redfin to restart its standalone rental housing listings business, which the commission says will restore competition in the market for rental property listings. The agreement also resolves litigation brought by state attorneys general in Arizona, Connecticut, New York, Virginia, and Washington.

FTC Statement

"This settlement delivers better, quicker, more certain results for both renters and property management companies than we would have been able to achieve after prevailing at trial, including firm and enforceable commitments by Redfin to relaunch its rentals advertising business," said Daniel Guarnera, director of the FTC's Bureau of Competition.

Background of the Complaint

In its complaint filed nearly a year ago, the FTC alleged that:

• Redfin agreed to shut down its internet listings in exchange for $100 million and other compensation from Zillow
• Redfin agreed to exclusively repost Zillow's apartment listings
• Redfin agreed to transition its customers to Zillow
• Redfin agreed to stay out of the apartment listings market for up to nine years

The commission argued that the companies' February 2025 pact violated federal antitrust laws and could reduce incentives for competition, potentially leading to higher prices and fewer choices for multifamily rental advertising customers.

Company Responses

Zillow and Redfin have maintained that their agreement was not anticompetitive and benefited renters and property managers alike.

In a statement Monday, Seattle-based Zillow said it "has consistently maintained the partnership with Redfin is pro-consumer and procompetitive, and we're pleased to have found a resolution that enables its continuation."

A spokesperson for Redfin, which was acquired by Detroit-based mortgage giant Rocket Companies last year, said Monday that the agreement "allows us to maintain our rental partnership with Zillow through at least 2030 while building and investing in a standalone rentals business of our own."

Terms of the Proposed Order

The FTC's proposed order requires Redfin to:

• Restart its rental listings business
• Hire enough staff to maintain the business within six months of the order being finalized, or face financial penalties

The FTC noted that Redfin fired hundreds of employees shortly after announcing its deal with Zillow.

Additionally, while Redfin will continue to syndicate Zillow's listings, it will be free to seek out and advertise non-Zillow listings, according to the FTC.