It says city's listing rules limit competition and force sellers into one-size-fits-all marketing strategies
Compass has taken its fight with the Northwest Multiple Listing Service (NWMLS) to federal court, escalating a simmering dispute over how homes are marketed in the Seattle region.
The brokerage giant filed a lawsuit on April 25 in US District Court for the Western District of Washington, accusing NWMLS of "monopolistic" behavior, restricting seller choice, and retaliating against Compass agents.
The lawsuit alleges that NWMLS policies, particularly its bans on pre-marketing and office-exclusive listings, have harmed consumers and prevented Compass from implementing its signature three-phase marketing strategy. Compass claims that it spent months attempting to negotiate policy changes, but NWMLS "simply refused" to allow flexibility for office exclusives.
“With NWMLS’s anticompetitive and tortious conduct, the only way a home seller in the Seattle area can effectively have the choice on how to market their home is to forgo using a professional real estate broker at all, because NWMLS has 100% of the real estate brokers in the Seattle area,” Compass lawyers wrote in the complaint.
They argue that the rules "prevented meaningful competition from gaining traction."
The suit follows weeks of increasingly public criticism from Compass CEO Robert Reffkin, who has taken to Instagram and LinkedIn to blast NWMLS policies. Reffkin also accused Windermere, a dominant local brokerage, of influencing the NWMLS board through its affiliated agents.
In the lawsuit, Compass expanded those accusations, alleging that all brokerages with board representation are "co-conspirators" working to maintain control of the market.
The filing also revealed that Tabata Perron, a Compass agent who briefly served on the NWMLS board, resigned in protest, citing what Compass described as "anticompetitive and tortious conduct."
The conflict began in March when Compass launched a private exclusives program in defiance of NWMLS rules. Compass agents in the Seattle area were encouraged to list properties privately, and Reffkin publicly praised each new listing despite the risk of penalties. Although no fines were initially levied, Compass had pledged to cover any penalties agents might incur. The standoff escalated further when NWMLS temporarily suspended Compass’ IDX data feed for two days.
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Windermere CEO OB Jacobi pushed back on Compass' claims, accusing the brokerage of "playing dirty" in the dispute.
Despite the tensions, Compass pressed forward with its marketing campaign and signaled that legal action could be imminent, launching a "Washington Homeowner Rights" website to rally support among sellers for a potential class-action lawsuit.
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