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.
