Zillow Faces Real Estate Broker’s Unfair Competition Claims

Zillow Inc. failed to escape unfair competition claims by a Connecticut real estate broker who alleged its deceptive conduct caused her to lose clients and commissions, but a federal judge dismissed Lanham Act and antitrust claims.

Audrey Demetres alleged that Zillow favors real estate agents who pay it a fee so they can be associated with properties they haven’t listed.

Zillow’s online platform redirects home buyers to its “advertising agents,” keeping buyers away from listing agents and causing those agents to lose revenue, she alleged.

She also challenged Zillow’s “Zestimate” program, saying it’s an artificial real estate market whose prices ...