FTC Reaches Settlement with Real Estate Listing Websites to Modify Apartment Listing Syndication Deal

The FTC has reached a settlement with two real estate listing websites, which precludes one website from exiting the market for apartment rental listings for up to nine years in exchange for $100 million.

As background, one listing website agreed to receive $100 million from the other in exchange for ceasing its internet listing service (ILS) business for apartment rentals as part of a rental listing syndication deal.  The website further agreed to repost only apartment listings that the other website provided and to remain out of the ILS apartment rental market for up to nine years.  The FTC settlement requires the websites to cancel this part of the deal.  And the website that had agreed to exit the ILS market for apartment rentals must reenter that market within six months of the settlement’s finalization.

Additionally, the settlement imposes various other obligations over a ten-year term.  For example, customers whose contracts cannot be cancelled within three months must be allowed to renegotiate their contracts to account for the reentrance of a major competitor in the market.  And the websites must notify the FTC before entering into certain other rental syndication deals.

According to the FTC, the settlement also resolves a parallel suit filed by five state attorneys general.