Commercial Property
Taking Persecution To The Public: FTC And DOJ Cohost Public Workshop About Competition In Real Estate
As part of their relentless persecution of the real estate industry, the Federal Trade Commission and the Department of Justice are planning a public workshop on Tuesday, October 25, 2005 at the FTC"s Satellite Building Conference Center at 601 New Jersey Avenue, NW. in Washington, D.C. to discuss competition in the real estate industry. The workshop will focus on issues related to the competitiveness of the residential real estate industry, and will cover topics such as multiple listing services ("MLSs"), online "virtual office websites" ("VOWs"), discount brokers and limited-service brokers, and minimum-service requirements. Realtors should absolutely participate in this workshop and voice their opinions. The DOJ and the FTC are taking real estate issues before the public that the average consumer has no way to understand. For example, the DOJ has just filed suit against the NAR over elements of a policy that has been successfully used by MLSs for over four years. The element under fire is called blanket opt-out, meaning that a broker has the right to "opt-out" of allowing his listings to be displayed by other brokers on their websites. The DOJ has made sure that media coverage exhibits outrage over blanket opt-out, and no reporter yet has explained the opt-out correctly, nor has one interviewed a so-called traditional broker to find out whether or not they would use the blanket opt-out and why. A reporter for CNN wrote, "If a buyer begins his home search on the Web, he may never see some of the properties available. That, to the Justice Department, does a disservice to consumers. Buyers would have fewer homes to choose from. Sellers would have fewer buyers bidding for their properties." However, the DOJ doesn"t tell the media that state law allows brokers to choose where they place their listings, and in fact, and that states don"t regulate brokers into sharing listings for advertising display on other brokers" websites against their will. Brokers don"t have to join an MLS at all. Further, the blanket opt-out is not an opt-out of the MLS, as the DOJ appears to believe and is telling the media to believe. Listings are available to consumers through agents participating in the MLS. They just might not be available for on every single website of every single agent. To point out the absurdity of forcing Realtors to share listings with competitors online to help them get customers, not to advertise the listings, the DOJ is intent on the parity principle -- making certain that the online brokers get the same benefits as offline brokers. Would Internet brokers like being forced to put their property ads in newspapers for public consumption? Parity can go both ways. And a final point -- most of the brokers today have websites which means if they opt-out of sharing their listings, they won"t have other brokers" listings to show either, and that would be a very poor way to compete. So, if the DOJ does not understand that the National Association" of Realtors new ILD policy does not restrict consumers from seeing listings online, how could the average consumer? In what may further stack the deck against Realtors, the DOJ and FTC are picking panel participants and taking comments, and we don"t know which they"ll use, because they have already shown to be adept at ignoring fundamentals of the real estate industry -- namely that the broker owns the listing. For participants, the FTC/DOJ are using the following criteria: The party has expertise in or knowledge of the issues that are the focus of the workshop; The party"s participation would promote a balance of interests being represented at the workshop; or The party has been designated by one or more interested parties (who timely file requests to participate) as a party who shares group interests with the designator(s). That means that Realtors and their supporters must submit comments to the DOJ/FTC for consideration because they might be published. All comments should also be copied to Steve Cook of the National Association of Realtors, so that it can be determined that the DOJ and FTC aren"t deliberately squashing comments from concerned Realtors. "All timely and responsive public comments, whether filed in paper or electronic form, will be considered by the FTC and the DOJ, and, to the extent practicable, made available on both the FTC and DOJ websites. As a matter of discretion, the FTC and the DOJ make every effort to remove home contact information for individuals from the public comments it receives before placing those comments on the FTC website. More information, including routing uses permitted by the Privacy Act, may be found in the FTC"s privacy policy and the DOJ Privacy Policy," says the FTC and DOJ. Comments filed in electronic form (except comments containing any confidential material) must be submitted to both the FTC and the DOJ. Parties can submit electronic comments to the FTC by clicking via Web link and following the instructions on the Web-based form. Parties also should email electronic comments to the DOJ at RealEstateWorkshop@usdoj.gov. The DOJ requests that attachments to electronic comments include a comparable text version, such as Word or Word Perfect. You also may visit here to read this request for public comment and may file an electronic comment through that Web site. The FTC and the DOJ will consider all comments that regulations.gov forwards to them. Requests to participate must be received on or before September 25, 2005. Interested parties may participate as panelists or they may submit written and electronic comments on topics to be discussed by the panelists which will include: The Real Estate Transaction: including the details of the real estate transaction from both the buyer"s and seller"s side; how broker efforts affect property sale price and how long a property remains on the market; and the economics of buyer and seller brokerage agreements and alternatives to the traditional arrangements. The Multiple Listing Service: including how the MLS works and its efficiencies compared to alternative models; the legal and economic issues raised by the MLS; intellectual property rights in MLS listings; and MLS" online listing policies. Private and State Actions that Inhibit Competition among Sellers" Brokers: including minimum-service requirements; state licensing and other requirements for for-sale-by-owner websites; local MLS rules that affect fee-for-service brokers and discount full-service brokers; and how any of the above restrictions may help protect consumers or otherwise provide benefits to consumers. Private and State Actions that Inhibit Competition among Buyers" Brokers: including state anti-rebate provisions; state rules that define online display of listings as advertising; minimum-service requirements applied to buyers" brokers; discrimination in compensation against discount buyers" brokers; and how any of the above restrictions may help protect consumers or otherwise provide benefits to consumers. Don"t miss this opportunity to get on the record -- tell the FTC and the DOJ exactly what you think.Bidding commented:
Thank you! You did a great job
02.04.2011