NAR urges DOJ and FTC to issue clear guidance on MLSs

MLS systems operate as procompetitive infrastructure by expanding sellers’ exposure to a broad pool of buyers, which can increase competition and support market-based prices. MLSs reduce buyers’ search costs and information gaps by providing a one-stop source for most area home sales. MLSs lower barriers to entry by giving brokerages of all sizes equal access to high-quality property data. MLS data feeds power innovation across brokerages, consumer portals, and technology firms. MLSs advance fair housing through transparent, broad access to listings and equip regulators with data to monitor for anticompetitive behavior. A diminished MLS system could shift market power to large brokers, portals, or technology companies and fragment verified property data. Updated DOJ and FTC guidance is requested to reaffirm MLSs, clarify low-risk sharing of widely disseminated historical factual data, confirm sharing of common property data fields, and draw a clear line between independent data sharing and competitively sensitive forward-looking information.

"NAR described the MLS marketplace as highly competitive, with many business models serving buyers and sellers. Brokers and agents invest heavily in obtaining accurate listing information and then submit those listings to their local MLS, where standardized rules supported by NAR organize, verify and distribute the data broadly to market participants. That structure, the group said, allows brokers to compete using complete, reliable, and comparable information."

"NAR laid out several ways MLSs function as procompetitive infrastructure: Expanding sellers' exposure to the widest pool of buyers, which can increase competition and support market-based prices; Reducing buyers' search costs and information gaps by offering a one-stop source for most area home sales; Lowering barriers to entry by giving brokerages of all sizes equal access to high-quality property data; Powering innovation through data feeds used by brokerages, consumer portals and other technology firms; Advancing fair housing by providing transparent, broad access to listings; Equipping regulators with data needed to monitor for anticompetitive behavior."

"NAR warned that a diminished MLS system would likely shift market power to the largest brokers, portals or technology companies, reduce competition and choice and leave buyers and sellers navigating a fragmented market with no single source of verified property data. NAR said the current reliance on case-by-case enforcement creates uncertainty that can discourage beneficial collaboration and data sharing."

"The group asked the DOJ and the FTC to issue updated, example-driven guidance that: Reaffirms MLSs as procompetitive infrastructure; Clarifies that sharing historical, factual property data that is widely disseminated and not forward-looking or competitively sensitive presents low enforcement risk; Confirms that common property data fields such as characteristics, transaction history and home prices may be shared; Draws a clear line between independen"

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