Appeals Court Upholds NAR’s Win in REX Case
The case upholds NAR’s optional “no-commingling” rule, affirming that MLSs can independently decide whether to adopt it — a significant victory for NAR.
NEW YORK — A federal appeals court on Monday upheld a ruling to dismiss antitrust claims against the National Association of Realtors® and Zillow stemming from a lawsuit filed by the Real Estate Exchange Inc. (REX) in March 2021.
At issue in the lawsuit was NAR’s optional “no-commingling” rule, which, if adopted, provides for the separation of MLS listings from other listings when those listings are shown on real estate websites. REX filed the lawsuit after a redesign of Zillow’s website displayed properties listed on the MLS on a separate tab from listings that were not from the MLS. REX claimed that NAR influenced how Zillow displayed listings, conspiring to stop REX, a now-defunct discount brokerage, from bringing lower fees to consumers. A district court ruled in 2023 that REX could not prove its claims, and the Ninth Circuit Court of Appeals agreed.
“In affirming the decision of the district court, the appeals court emphasized what we’ve said from day one: NAR’s no-commingling rule never constituted an antitrust violation,” says NAR General Counsel Jon Waclawski. “The rule is optional, leaving MLSs the choice whether to adopt it — and, in fact, 29% of them chose not to. We are pleased to put this meritless lawsuit behind us and maintain our focus on delivering value for our membership.”
The appeals court’s ruling means that individual MLSs can continue to decide for themselves whether to adopt this rule about how their data is displayed on other listing sites. NAR says it recognizes that each market is different, and association policies aim to empower Realtor®-owned MLSs to be independent marketplaces that can best serve the evolving business needs on a local level.
Home buyers, sellers and their agents rely on MLSs for the most accurate, reliable and transparent home data, which NAR’s MLS policies support. Without MLSs, buyers and sellers likely would have less choice among brokerages, real estate services and compensation models, which would hurt the average consumer.
© 2025 National Association of Realtors® (NAR)