Redfin ordered to reinstate listings, hire staff for the service under FTC settlement in Zillow case

The U.S. Federal Trade Commission (FTC) has arrived at a deal with Zillow and Redfin to address allegations that the entities conspired illegally to stifle competition in online rental advertising. On Monday, the FTC submitted a proposed order to the U.S. District Court for the Eastern District of Virginia. The proposed order primarily requires Redfin to reinitiate its standalone rental housing listings business, a move that FTC representatives claim will foster competition in the rental property listings market.

The settlement also settles disputes from state attorneys general in Arizona, Connecticut, New York, Virginia, and Washington.

According to FTC Director Daniel Guarnera, the settlement provides "better, quicker, more certain results for both renters and property management companies," including "firm and enforceable commitments by Redfin to relaunch its rentals advertising business." In its complaint filed almost a year ago, the FTC alleged that the companies struck a deal in exchange for $100 million and other compensation from Zillow, compelling Redfin to halt its internet listings and exclusively repost Zillow’s apartment listings.

The FTC further contended that the companies' February 2025 agreement contravened federal antitrust laws and could diminish incentives for competition, resulting in higher prices and fewer options for multifamily rental advertising customers.

Zillow and Redfin argued that their arrangement was not anticompetitive and advantageous to renters and property managers alike. The proposed FTC order mandates Redfin to restart its rental listings business and hire sufficient staff to sustain it within six months of the order's finalization or face financial penalties. The FTC stated that Redfin had laid off hundreds of employees following its announcement of the deal with Zillow.

Despite this, Redfin will continue to syndicate Zillow’s listings while being permitted to procure and advertise non-Zillow listings, as per the FTC. Zillow spokespersons maintained that the partnership with Redfin is "pro-consumer and procompetitive," and Redfin reiterated its agreement to maintain the rental partnership with Zillow through at least 2030 while developing an independent rentals business of its own.