Another class action lawsuit, this time from real estate agents in Washington state, accuses Zillow of illegally directing business to Zillow Home Loans.
Last week, Zillow Group became the target of yet another class action lawsuit, adding to the company’s lawsuits.
In the lawsuit, the Washington state-based representative accused Zillow of exercising “monopoly power” to steer business to its mortgage division while charging high fees for such services. “As a result, Zillow is able to charge exorbitant fees and steer agents and consumers alike into inferior financial products, distorting both the real estate and lending markets,” the complaint filed on January 16 says.
Currently, multiple lawsuits have been filed against Megaportal 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 argued in his complaint that because of Zillow’s control of the market, agents have little choice but to join the company’s partner agent programs (including “Premier” and “Preferred” status) for referrals, even though they must pay the portal as much as 40% commission on leads that convert into sales.
He further argued that despite Zillow’s claims that Preferred Agents are not required to refer customers to Zillow Home Loans for financing, “the reality is different.”
“Agent evaluation” [Follow Up Boss, Zillow’s CRM] “The higher an agent’s rating, the more connections Zillow sends them. An agent’s rating is related to the number of loan pre-approvals they secure through ZHL,” the complaint states. Conversely, agents with the lowest ratings risk being removed from the program. In other words, Premier Agents who can’t drive clients to ZHL will see their business slow down bit by bit as Zillow restricts their access to connections. ”
The complaint alleges that Zillow’s conduct constitutes an “unlawful tying arrangement” that violates state and federal antitrust laws.
A Zillow spokesperson told Inman in an emailed statement that the complaint tells a “one-sided story” that does not reflect how Zillow Preferred operates.
“Consumers are always in control of which agents and lenders they work with. Zillow helps agents deliver strong outcomes for buyers by sharing clear information and helping buyers understand what they can afford,” the statement said. “Referral fees for the Zillow Preferred program are paid between companies and are consistent with industry practices. These arrangements do not change the fees consumers can negotiate with their agents. We remain focused on protecting ourselves from these charges and delivering a better real estate experience for buyers, sellers, renters, and the professionals who serve them.”
According to the complaint, the Dupuis team joined Zillow’s invitation-only Preferred Agent program in 2022 after spending eight years as a premier agent. Shortly after Zillow announced the expansion of its Enhanced Markets program last year, Dupuis was told by the company to sign up for a follow-up boss by Sept. 1 or be removed from the Preferred Program, the email filing shows.
“Shortly thereafter, Ms. Dupuis faced increasing pressure to direct customers to ZHL,” the complaint states, while also stating that she and her team “refused” to comply with the inducement pressure. The filing also said Dupuis saw a follow-up boss receive a penalty for the team’s low ZHL pre-approval rating. Then, in December 2025, the team’s Zillow Showcase account was suspended.
Plaintiffs in this action seek actual damages, treble damages, costs, attorneys’ fees, and injunctive relief.
In the fall, two additional class action lawsuits were filed against Zillow by consumer plaintiffs. The lawsuits were consolidated in December and allege that Zillow violated the Real Estate Settlement Procedures Act (RESPA) when directing 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 lawsuits against the company misrepresent the portal and its programs.
“The allegations in these lawsuits are false and fundamentally flawed with the way Zillow Preferred operates,” Zuhaira Washington, senior vice president and general manager of Zillow Preferred, said in a message. “Everything we do starts and ends with the consumer. Buyers and sellers have the right to choose who they work with and receive transparency throughout the process. And that has been the core of our model from day one.”
See the full complaint in the new lawsuit below.
