Infonestira

Another class-action lawsuit, this time from a Washington state real estate agent, has accused Zillow of illegally steering business to Zillow Home Loans.

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Last week, Zillow Group became the target of yet another class-action lawsuit, adding to the company’s mounting litigation.

In the suit, an agent who is based in Washington state accused Zillow of wielding its “monopoly power” to steer business to its mortgage arm while allegedly charging for such services at elevated prices. “As a result, Zillow is able to extract outsized commissions and steer agents and consumers alike to inferior financial products, distorting both the real estate and lending markets,” the complaint, which was filed on Jan. 16, reads.

Multiple lawsuits have now been filed against the mega portal with similar allegations. News of the latest lawsuit was first reported by Real Estate News.

The plaintiff is Stephanie Dupuis, who owns the Dupuis Team in Kitsap County, Washington. Dupuis alleged in the complaint that due to Zillow’s hold on the market, agents have little choice but to join the company’s partner agent program (which includes “Premier” and “Preferred” statuses) for referrals, despite having to pay the portal as high as a 40 percent commission on leads that turn into sales.

She further argued that despite Zillow’s claims that Preferred agents are not required to refer clients to Zillow Home Loans for financing, “the reality is different.”

“An agent’s rating in [Follow Up Boss, Zillow’s CRM] is tied to the number of loan pre-approvals they secure through ZHL,” the complaint states. “The higher an agent’s rating, the more connections Zillow sends their way; conversely, the lowest rating agents risk getting cut from the program. In other words, a Premier agent who fails to direct their clients to ZHL will see their business slow to a trickle, because Zillow will restrict their access to connections.”

The lawsuit claims Zillow’s practices consist of an “illegal tying arrangement” that violates state and federal antitrust laws.

A Zillow spokesperson told Inman in an emailed statement that the complaint told a “one-sided story” that doesn’t reflect how Zillow Preferred operates.

“Consumers are always in control of which agent and lender they work with, and Zillow supports agents who deliver strong outcomes for buyers by sharing clear information and helping them understand what they can afford,” the statement said. “Referral fees in the Zillow Preferred program are paid between businesses and are consistent with industry practices. These arrangements do not change the fees consumers can negotiate with their agent. We will defend ourselves against these claims, while we stay focused on delivering a better real estate experience for buyers, sellers, renters and the professionals who serve them.”

The Dupuis Team joined Zillow’s invite-only Preferred Agent Program in 2022 after spending eight years as a Premier Agent, according to the complaint. Last year, shortly after Zillow’s announced expansion of its “enhanced markets” program, Dupuis was told by the company she had to sign up for Follow Up Boss by Sept. 1 or be removed from the Preferred program, an email in the filing showed.

“Not long after, Ms. Dupuis experienced increased pressure to steer clients to ZHL,” the complaint stated, while also noting she and the team “refused” to comply with steering pressures. The filing also said that Dupuis saw in Follow Up Boss that she was being penalized for the team’s low ZHL pre-approval ratings. Then in December 2025, the team had its Zillow Showcase account terminated.

The suit’s plaintiffs are seeking actual damages, treble damages, costs, attorneys’ fees and injunctive relief.

In the fall, two other class-action suits were filed against Zillow by consumer plaintiffs. Those suits were combined in December and allege that Zillow violated the Real Estate Settlement Procedures Act (RESPA) in steering buyers to Zillow Home Loans.

In early December, Zillow’s head of Zillow Preferred said in an email and video message sent to Preferred agents that recent litigation against the company misrepresented the portal and its programs.

“The claims in these lawsuits are false and fundamentally mischaracterize how Zillow Preferred operates,” Senior Vice President and General Manager of Zillow Preferred Zuhairah Washington said in the message. “Everything we do starts and ends with the consumer. Buyers and sellers deserve choice in who they work with and transparency throughout the process. And that has been core to our model from Day One.”

See the full complaint from the new case below:

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