A Norwalk resident is among 10 homebuyers spearheading a class action lawsuit against online real estate marketplace Zillow, which claims Zillow was deceptive in its selling practices.
The plaintiffs say Zillow violated their rights by tricking buyers into using a Zillow homebuyer agent and pushing them to use Zillow Home Loans to finance their purchases.
The lawsuit claims when prospective buyers select the “contact agent” link on Zillow thinking they are contacting the listing agent, instead they are routed to a Zillow-affiliated buyer’s agent.
Some of the contracted Zillow agents urge buyers to pay more for homes so they can get a bigger commission, as the agent is required to give up to 40% of their cut to the company, according to the lawsuit.
The Norwalk resident purchased a home in Norwalk and did not feel she had any other options after requesting a house tour and being connected with a Zillow-contracted buyer’s agent, according to the lawsuit.
The law firm of Hagens Berman Sobol Shapiro is representing the 10 leading plaintiffs.
“From the CT plaintiff’s perspective, specifically, the lawsuit alleges that she was deceived by Zillow’s website in multiple manners,” Ash Klann, with the firm, said. “The lawsuit alleges that Zillow’s website violates consumers rights by shoehorning Zillow agents into the process, to receive fees, without the consumer’s knowledge or consent.”
After the initial complaint was filed in September, a dozen former Zillow employees corroborated the lawsuit’s claims, according to the firm representing the plaintiffs.
“Twelve current and former agents and loan officers have bravely stepped forward to help our clients build a comprehensive case against Zillow, and with their added information, we believe this lawsuit has the potential to bring major changes to Zillow’s policies and practices,” Steve Berman, managing partner and co-founder of Hagens Berman, said.
The lawsuit claims Zillow’s goal is to “monetize every step of the home buying process—even if illegally—and to encourage, incentivize, and ultimately coerce agents into violating their fiduciary duties by disregarding their clients’ interests.”
Plaintiffs are seeking monetary damages for the company’s deceptive practices, according to the lawsuit. Zillow did not respond to Connecticut Public’s request for comment.
If a homebuyer purchased a house using a Zillow agent, beginning in 2019, or financed a home using Zillow Home Loans, they may qualify to join the class action lawsuit.
