Internet Crusade (the company which conducts the e-PRO Course for NAR) had an announcement on their Real Town website that the recent final judgment from DOJ about the investigation and suit against NAR was a WIN for NAR and regular brokers and MLS systems.  BUT - There was an article in the 5/28/08 edition of USA Today with a headline that touted "Online real estate agents get equality".  This article said the ruling was a win for the online discount broker (those operating a VOW or Virtual Office) and implied that what NAR was doing was somehow suspect and anti-competitive.  How could these both be correct?  Spin, of course. USA Today and other media have been against NAR in recent coverage of MLS ownership of data and broker's ownership of listings.   DOJ has been in the same mindset and spent 3 years and millions of tax-payers dollars to "prove" it.  The facts seem to indicate that both the media and DOJ were incorrect and there is now a face-saving DOJ final judgment on that.  IC put out a video of their two principal founders on their website going over the final judgment line by line to show why their position was the correct interpretation of the judgment.  Problem is that it lasts several hours.  Now they have a 6 minute summary of the conversation.  It can be found at RealTown - Real Estate Social Network, Real Estate Articles, Real Estate Blogs.  The full set of videos can be seen at their website and a copy of the Final Judgment is also available on their website.  The point is who owns the data and who can control its use.  VOWs often got access to data only to sell it back to REALTORS®  as a "lead".  Evidently REALTOR.com was doing that for a while as well. 

Seems that if the IC interpretation is correct, NAR did a good job and REALTORS® in general pretty much had MLS and data sharing right from the outset.  IC feels that VOWs will kind of go away as a business model or at least significantly change as a result of the ruling rather than be strengthened by it.

 
Post is included in group: Pa Carbon County Blog

2 Comments on DOJ vs NAR

JUN
13
2008
3 Featured Posts

      Thomas,  Have followed this since before the lawsuit.  Our business model as a whole has changed so much in the last 3+ years it might take a couple more to find out what any of this really means to the world we live and work in.  The pressure on agents to perform at a high level and  the public's demand that all information is free hasn't changed. Sad to say, there will still be companies working the middle ground.

10:32am • #1
JUN
14
2008

Kim - Your point, I think, is in keeping with the original post.  The competitve nature of the real estate market and the impact of the Internet have been the driving forces (not lawsuits valid or otherwise) and no business model (at least not successful ones) can or has remained static in the last three years.  If a individual's business has changed, good for them and I hope they are successful as a reult.  If it has not changed the chances are they are already unsuccessful  For those working the middle ground, I say, great - if it works for you.  My point was the needless waste of time and money because of the suit and certainly the needless use of government intervention (which almost always produces nothing more than unintended consequences). 

12:08am • #2

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Thomas Bradley

Lake Harmony, PA

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Century21 Select Group

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Blogs about Albrightsville, Lake Harmony and Split Rock communities in Carbon County in Pennsylvania's Pocono Mountains. Covers real estate issues and updates, general observations about the area and provides input on area news and events in Carbon County


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