Realtor.com Faces Class Action Lawsuit Over Alleged Fake Lead Sales

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In a landmark legal challenge that could shake the foundations of real estate lead generation, eight Realtors from across the United States have filed a class-action lawsuit against Realtor.com's parent company, Move, Inc., for allegedly selling fraudulent and unvetted leads. The lawsuit spans California, Nevada, Washington, Florida, Georgia, and New York, aiming to hold not only Move but also its parent company, News Corp, and The National Association of Realtors (NAR), accountable for a scheme that has reportedly misled countless real estate professionals.

The plaintiffs claim that Move, through its suite of websites including Realtor.com, ListHub, and UpNest, has been selling leads that are either fake or of no value. These leads, sold under the guise of being vetted and high-intent, are often unverifiable, with some even lacking the presence of an actual human being. According to the lawsuit, 40 to 50 percent of the leads provided by Realtor.com are either completely uninterested in purchasing real estate or are fabricated entirely.

Central to the allegations is the claim that Realtor.com has been selling the same batch of leads to multiple agents, breaking promises of lead exclusivity and undermining the trust real estate agents place in the platform. The lawsuit further details how agents, after realizing the poor quality of the leads, sought refunds but were met with denials, offers of credit, or suggestions to purchase more expensive subscriptions for better-quality leads. This behavior, the plaintiffs argue, is not only unethical but also part of a broader "Attrition Program" designed to frustrate and wear down those seeking restitution.

The lawsuit doesn’t stop at Move and Realtor.com. The plaintiffs allege that NAR, through its close ties with these entities, was fully aware of the ongoing fraud and chose to ignore it, thereby aiding and abetting the scheme. The Association’s endorsement of Realtor.com’s services, they argue, lent an air of legitimacy to the fraudulent practices, leading agents to trust the leads provided to them.

This is not the first time Realtor.com has been under legal scrutiny for its lead generation practices. Previous lawsuits have echoed similar complaints, although they were eventually dismissed. However, the persistence of these issues, coupled with the growing dissatisfaction among real estate agents, suggests that this new class-action lawsuit could be a turning point for the industry.

As the legal battle unfolds, Realtor.com has remained tight-lipped, stating only that it plans to "vigorously defend" itself against the allegations. Meanwhile, NAR has distanced itself from the lawsuit, emphasizing that it neither owns nor operates Move, Inc.

With the potential for significant financial damages and a further erosion of trust in the real estate lead generation industry, the outcome of this case could have far-reaching implications for how online platforms interact with real estate professionals.