CONSUMERS AND REX WIN AGAIN IN FEDERAL COURT

SEATTLE, Dec. 21, 2021 /PRNewswire/ -- Yesterday, a federal court in Seattle granted another major victory for consumers by denying the National Association of Realtors (NAR)'s motions to dismiss REX's antitrust claims against the trade association's segregation rule.

With yesterday's ruling, REX, the technology company resetting traditional real estate, made a big step toward putting consumers in control of how they buy and sell homes. REX has successfully alleged that NAR's segregation rule, which now controls Zillow's websites, has hurt consumers by making it virtually impossible to locate homes with consumer-friendly commissions. U.S. consumers pay 5 to 6 percent in commissions on average when they buy and sell homes—a staggering amount that is two to three times what consumers around the world pay.

The NAR segregation rule cordons off low-commission homes to a "hidden" tab, where these homes cannot freely compete with the homes sold by the big brokers who banded together to create the segregation rule and other restrictions that prevent competition and keep home prices artificially high. The ruling marks the third time that REX has won on its antitrust claims against the NAR segregation rule.

Reactions from REX CEO Jack Ryan and General Counsel Michael Toth:

"REX is the only real estate industry player willing to fight for consumers in the court of law and public opinion. Legacy real estate brokers do not want consumers to choose for themselves. REX does. The ruling is another important step towards reining in the anti-competitive policies that have come to define big real estate. It points to the long overdue changes that REX already delivers to home shoppers nationwide," said REX CEO Jack Ryan.

"Today's ruling is a win for consumer choice. The opinion—the third time REX has won on its antitrust claims in this case—makes it clear that Zillow changed its website because of NAR's rules. REX has said all along that these rules are being used to prevent consumers from having the choices that have become common in every other industry. The ruling brings REX one big step closer to putting consumers in control of their own real estate transactions. As our case continues to progress, REX looks forward to getting to the bottom of how real estate insiders, led by NAR, have stood in the way of basic consumer rights for decades," said REX General Counsel Michael Toth.

Yesterday's decision once again connected Zillow's display change with the NAR segregation rule. Among other things, the court's order points to a statement from a Zillow representative, who told REX that "these changes are for us to comply with MLS rules." The segregation rule is an example of an anti-competitive NAR rule that brokers across the country impose through local multiple listing services (MLSs), which Zillow recently joined.

Other key quotes from the ruling include:

• "NAR takes a second bite at the apple, and argues that Plaintiff's amended complaint confirms that NAR's actions did not cause Plaintiff's alleged injuries . . . . As before, NAR ignores Plaintiff's allegations that NAR is a direct participant in the challenged conduct."
• "The Court concludes that Plaintiff's alleged injuries are fairly traceable to NAR's conduct."
• "The amended complaint plausibly alleges that Zillow changed its websites because of NAR's rules."

REX's critical legal fight will continue to play out as NAR and Zillow must now defend their anticompetitive tactics on multiple fronts. The Justice Department has demanded that NAR share information about the segregation rule in a civil subpoena that NAR has not complied with, opting instead to challenge the investigation in federal court. As NAR's challenge to the Justice Department remains pending, REX's case against the segregation rule will continue into fact discovery.

For media inquiries: contact Colin Maynard at [email protected].

ABOUT REX
REX, headquartered in Austin, Texas, is a real estate tech company resetting the traditional real estate market nationwide. When buying a REX home - or any home on the market in the U.S. purchased through REX - consumers have the peace of mind knowing they are finding residential real estate for less and saving time thanks to our groundbreaking technology. REX has emerged as the national leader in real estate reform since founding the company in 2016 with the goal of eliminating fees, growing the U.S. real estate market, and saving Americans billions of dollars each year. REX also works as a partner in the global fight against housing insecurity. Learn more about REX's online platform, integrated services, and business model at rexhomes.com. Also visit newsroom.rexhomes.com for the latest press releases, podcasts, market analysis, digital real estate data, and information about the company and leadership team.

SOURCE REX

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