CT resident joins Zillow class action lawsuit, claiming deceptive homebuying practices

Connecticut Public
A Connecticut resident is part of a class action lawsuit alleging Zillow used deceptive practices to push its own agents and loan services.

Summary

A Norwalk, Connecticut resident is among ten homebuyers leading a class action lawsuit against Zillow, alleging the company engaged in deceptive practices during the homebuying process. The lawsuit claims Zillow misled buyers by routing “contact agent” inquiries to Zillow-affiliated agents and incentivized them to encourage higher offers to increase commissions, with agents required to share up to 40% of their earnings with Zillow. The plaintiffs argue they were unaware they weren’t contacting the listing agent directly and felt pressured to use Zillow’s services.

The law firm Hagens Berman Sobol Shapiro, representing the plaintiffs, states that Zillow’s website “violates consumers rights by shoehorning Zillow agents into the process, to receive fees, without the consumer’s knowledge or consent.” Twelve former Zillow employees have reportedly corroborated these claims, suggesting a pattern of prioritizing profit over client interests.

The lawsuit seeks monetary damages and aims to change Zillow’s policies. Zillow has not yet responded to requests for comment. Homebuyers who used a Zillow agent or Zillow Home Loans since 2019 may be eligible to join the class action.

(Source:Connecticut Public)

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