This press release was just sent out by MiRealSource, one of the two Michigan MLS's that were challenging the FTC over minimum service and distribution of data. The largest MLS in Michigan, Realcomp II is still proceeding in its battle against the DOJ. They've told members that E & O insurance is paying for the legal bills and that it is not a drain on resources. The implications are significant for the industry.
Troy, Michigan November 28, 2006 – MiRealSource, Inc. has agreed to settle an administrative complaint which the Federal Trade Commission (FTC) filed in September challenging certain MiRealSource rules. In general terms, MiRealSource has agreed to modify its rules to allow all lawful real estate listings of MiRealSource members, including exclusive agency listings, to be posted on MiRealSource’s multiple listing service (MLS) and to not require its members to provide a minimum set of services.
After a great deal of deliberation and thought MiRealSource concluded that resolving its’ dispute with the FTC was in the best interest of its’ members. Without an agreement, MiRealSource would be required to devote a significant amount of its resources, time and energy to litigate with the FTC. In addition, MiRealSource recognized that as an organization, it could never match the almost limitless resources that the FTC can bring to bear to the litigation.
Finally, and perhaps most importantly, MiRealSource recognized that sweeping changes in the real estate industry, fueled in large part by the widespread use of the internet and consumer expectations of access to information that the internet provides, meant that its rules would have to evolve, regardless of the outcome of its dispute with the FTC.
MiRealSource decided to resolve its dispute with the FTC to allow the organization to prepare for the future. MiRealSource believes it is wiser to expend its resources serving the best interests of its members by providing the most accurate and up-to-date information possible and providing exceptional services at the most competitive prices.
The agreement remains subject to the final approval of the FTC. MiRealSource is in the process of revising its rules to comply with its negotiated agreement and expects to have the revised rules in place not more than 45 days after the FTC’s final approval.
Formed in 1966, MiRealSource is Michigan’s largest broker-owned Multiple Listing Service (MLS) and is committed to protecting and safeguarding the integrity and quality of the information contained in the multiple listing service for the benefit of its members. MiRealSource provides MLS software training, and dispute resolution services and access to a host of other real estate products and services. Headquartered in Oakland County with three regional offices in Macomb County, Lapeer County, and St. Clair County, MiRealSource continues to expand its service offerings.
I've never reprinted something that I did not write on AR before, but since it is a press release, that is kind of the purpose. Just wanted this information to be available to everyone.
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I am about to spam my own blog, but Justin put up a reminder that tonight is the deadline for submissions for the Carnival of ActiveRain.
Reserved. I learned that "reserved" thingie from TLW. The implications are HUGE! IMHO there are fewer issues that will have a more significant affect on our business than this (well, except for the MASSIVE success of AR!) I submitted my entry into the Carnival. Wish me luck!
I scooped Inman. Now there is a first. I agree with you, Rich. This is big. I, for one, hope that Realcomp holds out. But it will be hard. They are bigger than mirealsource though.
PS. I always have more than enough room for your comments (and everyone else's).
Yeah, but it's just nice to be "first" once in a while. So many times I'm late to the party. Fashionably late, mind you. Or else I have to stand at the door of your blog and beat commentors off with a stick, just so I can voice my opinions. It's not pretty!
Since perception is reality, what do you see as public reaction to this? An admission of an error in judgement? A necessary change? Will they care or understand? I'm not sure I know how to answer that part. The FTC is not my favorite and I'm thinking they probably WOULD go ahead and fight this issue with all of their guns. I guess I'm coming down on the side of inevitability? I also wonder how this would affect individual companies that currently choose to keep certain listings off their websites. This really is a huge issue.
Public perception will be: "huh? who cares?" I think the issue requires some pretty specific industry knowledge to understand. I also think that the public thinks that the MLS is a public utility. They just want to see all the houses available. The public really doesn't care if we get paid.
Yes, something like it might be inevitable, but I don't think the government should be bullying the mls's or NAR.
Reserved Parking...:) TLW...ROAR!
I agree we don't need the government meddling in the free market economy - whiners and politicians have a field day with this type of stuff.
Thanks! It has been quite a week with Seattle MLS deciding to stop sending listings to realtor.com and the Pittsburgh MLS deciding not to allow individual agents to have IDX on their web sites any more. I think that no matter what our associations say our industry will undergo so major changes this year.
I agree with you Maureen and don't want to go too far off topic here, but the FTC specifically gets my blood roiling on any given day, and not just about our industry. They screw up radio on a regular basis. Don't get me started lol. So in order to avert that, The Real Estate Industry needs to start being proactive and preemptive and come up with a system to keep the FTC out of our lives. I hope that is possible. Why should we be the tail wagging the dog?
We were fortunate in Illinois that the State came forward and made a law to determine that even limited service had basic fiduciary duties of representation. This dealt a severe blow to the hands off - no touch - small fee guys. This removes the onus from the MLS and creates a more level playing field.
How can they "fix" something they refuse to understand?
kk
We recently went through similar hoops in Chicago. Water always seeks its own level so you just learn to adapt. The brand new agent will never know the difference anyway. Life just goes on for us more experienced folk. I remember my first Realtor had a big secret MLS book(that she never let me peek into!) that got updated weekly and she drove an S series Benz. My point being, no matter what happens to the MLS, the best agents will still produce. I think 'Broker Reciprocity' is a good thing.
I agree with Maureen's comment about the public's perception being "huh? who cares?". I think the only ones who truly care are those in the industry and a very tiny percentage of consumers even know about any of these FTC complaints, much less fully understand the issues involved.
Maureen, good for you in scooping Inman... and thanks for joining the MLS Issues group and adding this timely post to it. I've been busy this week so I haven't had a chance to really put a quality post out there about the group, but I do hope it will become a useful and informative place where we can bring about discussions on any/all MLS issues and MLS-related issues.
KK, I agree. The government is trying to fix something they don't understand. Illinois was smart to deal with minimum service issues already. We haven't been successful with that in MI.
I'm going to pipe in a little late, but I wasn't reading your blog when you posted this (a problem I have since corrected.) When I typed this comment is started looking more like a post, so I moved it to my page here.
I'll head on over there to check it out then.