The Z was Zapped, A Play in Twenty-Six Acts by Chris Van Allsburg (Thomas Allen 1998)
A consumer protection complaint was filed today against Zillow with the FTC (Federal Trade Commission) alleging that Zillow is misleading consumers. It also alleges that Zillow is misleading real estate professionals and real estate lenders. Oh my.
The National Community Reinvestment Coalition (NCRC) reported its filed complaint in a U.S. Newswire press release. According to NCRC:
“Zillow is placing the American dream of homeownership at risk for countless working families,” says John Taylor, NCRC President and CEO. “For a company that represents to consumers that they are the ‘Kelley Blue Book of Homes,’ this is a very dangerous situation. We call upon the FTC to intervene and ensure that Americans receive accurate appraisals and valuation information to protect the single most important investment of their lives: their home.”
Vicky Cassin Zillioux (really, that’s her name) of CRAV (Center for Responsible Appraisals & Valuations) had this fuel to add to the fire:
“Valuing a property for a financial decision is not a game - and should not be treated lightly by the consumer, lender, or the vendor supplying that value. When you consider how much testing and due diligence the banking regulators require for lenders to use AVMs, it seems that a similar level of accuracy should be expected by the consumer at www.Zillow.com”
AVMs are exempt from appraisal standards but Zillow is not conspicuous in disclaiming its nonappraisal methods. Seems we, and a certain bloodhound, were not the only ones upset over this. Will Zillow be required to post a conspicuous non-appraisal disclaimer on its Home Page and beside each zestimate? Only time and the FTC will tell.
A HUD complaint may also be filed.
NCRC says it is a national non-profit membership organization that promotes economic justice and equal access to credit, capital and financial services to traditionally underserved communities.
Link to US Newswire press release. H/T: Columbus Best Blog. (via Roberta Murphy, Active Rain)
Read the actual FTC Complaint against Zillow here (pdf) where the dirt really flies: abusive, deceptive, misleading yada yada yada lawyerspeak.
Legal Note: Since anyone can file a complaint with the FTC, it remains to be seen how seriously the agency takes it. We’ll keep you posted.
Ironic Update: Zillow’s General Counsel, Liam Lavery, Esq., will be speaking at an FTC Conference on November 7th. Topic: How Access to Information on the Internet Affects Consumers’ Buying Behavior.
Wow! I have been busy this week and can’t keep up with the blogs. When did someone decide that infornation posted on the internet has to be true? I missed the memo or email. I am an advocate for giving consumers correct information but at the same time the journalist in me is an advocate of freedom of speach. Any person seaking data or information on the internet should consider the source. Sources should be up front about where their data comes from and how accurate it is so that consumers can decide if they should use the data in their decision making process. Sorry for the lengthy comment but I am passionate about what I see as two issues: Good information for consumers and freedom of speach for web site publishers.
You know these silly lawyers and all their disclaimers. Like on the coffee cup lid that says “Hot Contents” . Blame it on the lawyers.
This is about as ridiculous as it gets. Flagrant complaints waste taxpayer money.
M.
The question is are a fair number of consumers actually being misled? Most maybe not, but how many unsophisticated are being misled? Should we be concerned at all about the unsophisticated consumer? Maybe not. That’s up to the FTC to decide and ultimately the legal system.
Suprise!
YOU MAY THINK ITS CORNY OR WHATEVER CRAP YOUR ALL TALKIN SHOWS THAT YOU DONT KNOW HOW A COMPANY CAN EFFECT THE WORLD AND YOU DONT KNOW WHAT YOUR TALKIN ABOUT HERES HOW THEY HURT YOU ZILLOW HAS UNDERVALUED MY HOME ON THERE SITE WHEN MY HOUSE WAS UP FOR SALE I HAD IT LISTED 10,000 BELOW COMPS FOR THAT LAST YEAR AND HALF COULDNT UNDERSTAND WHY IT WOULDNT SELL EVEN THOUGH IT WAS UDER APPRAISED VALUE WELL ZILLOW GOT MY HOUSE APPRAISED FOR ME EXCUSE ME FOR SPENDING 300 FOR THE LICENSED APPRAIEL IN FLORIDA A WASHINGTON BASED WEBSITE KNOWS MY HOMES VALUE BETTER THAN THE REALTORS IN THE AREA I HAVE OVER 60 VIEWS ON MY HOME ON ZILLOW.COM AND THE PRICE LISTED JUST SO HAPPENS TO BE THE SAME LOW BALL CRAP OFFER I ALWAYS GOT FROM BUYERS HMMMMMMMM COINCEDENCE THINK NOT YOU LITTLE WEBSITE POP UP COS DONT THINK ABOUT WHAT YOUR DOING IN YOUR SEARCH FOR GOLD YOU STEP ALL OVER PEOPLE NOW I WILL BE SUING THIS COMPANY FOR THE DIFFERENCE OF WHAT THEY APPRAISED MY HOUSE AND WHAT MY LIC APPRAISER APPRAISED MY HOME ANY QUESTION!? WHICH IS AROUND 50,000 WHEN ITS YOUR POCKETS A COMPANY SCREWIN WITH WILL SEE HOW FLAGRANT THE COMPLAINT IS! YOU ALL WORK FOR ZILLOW PROBABLY REVERSE PROPAGANDA