Zillow and Redfin being sued by 5 states, the FTC over alleged rental advertising scheme — how it could impact prices

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According to USA Today, attorneys general from five states have filed a joint lawsuit against the two companies, and the Federal Trade Commission has filed its own lawsuit as well (1).Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's howI’m almost 50 and have nothing saved for retirement — what now? Don't panic. These 6 easy steps can help you turn things aroundDave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAPThe lawsuits claim Zillow and Redfin engaged in an illegal scheme that was designed to stop competition in the online rental advertising business. This could increase the cost of advertising a rental property online, while leaving consumers with fewer options and potentially higher costs for rental units.Officials from Arizona, Connecticut, New York, Virginia and Washington — along with the FTC — claim that Zillow and Redfin violated federal antitrust laws, including Section 1 of the Sherman Antitrust Act and Section 7 of the Clayton Act.These violations allegedly occurred when Zillow reportedly paid Redfin $100 million in order to shut down the latter's online rental advertising business and transfer its clients over to Zillow. The lawsuits also allege that, as part of the deal, Redfin fired hundreds of employees before turning around and helping Zillow to rehire some of them."This agreement is nothing more than an end run around competition that insulates Zillow from head-to-head competition on the merits with Redfin for customers advertising multifamily buildings," states a portion of the lawsuit from the five states.Unfortunately, if the two companies did in fact unlawfully collaborate, this could have negative consequences for consumers. This alleged scheme is believed to have the potential to drive up the cost of online advertising for rental units, and if it becomes more expensive for landlords to advertise, they may pass those costs on to consumers.This could also leave consumers with fewer rental options, especially if smaller landlords can't afford to advertise on a major rental listing website like Zillow.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,851.97 +11.77 (+0.17%)Dow 3047,336.68 -226.19 (-0.48%)Nasdaq23,834.72 +109.77 (+0.46%)Russell 20002,469.54 -9.84 (-0.40%)VIX17.36 -0.08 (-0.46%)Gold4,023.80 +27.30 (+0.68%)PortfolioSign in to access your portfolioSign inTop gainersCIFR Cipher Mining Inc. 22.76 +4.11 (+22.04%)AMKR Amkor Technology, Inc. 37.84 +5.56 (+17.22%)IDXX IDEXX Laboratories, Inc. 722.94 +93.43 (+14.84%)LUMN Lumen Technologies, Inc. 11.83 +1.55 (+15.03%)FRPT Freshpet, Inc. 56.25 +7.04 (+14.31%)Top losersQURE uniQure N.V. 34.29 -33.40 (-49.34%)RGC Regencell Bioscience Holdings Limited 13.56 -3.09 (-18.56%)KMB Kimberly-Clark Corporation 102.27 -17.44 (-14.57%)UUUU Energy Fuels Inc. 17.43 -3.08 (-15.02%)CDE Coeur Mining, Inc. 15.12 -2.06 (-11.97%)Most activeKVUE Kenvue Inc. 16.16 +1.79 (+12.46%)NVDA NVIDIA Corporation 206.88 +4.39 (+2.17%)CIFR Cipher Mining Inc. 22.76 +4.11 (+22.04%)PFE Pfizer Inc. 24.69 +0.04 (+0.16%)ONDS Ondas Holdings Inc. 6.15 -0.29 (-4.50%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersBTC-USD Bitcoin USD 106,950.41 -3,160.76 (-2.87%)PLTR Palantir Technologies Inc. 207.18 +6.71 (+3.35%)IREN IREN Limited 67.75 +7.00 (+11.52%)KMB Kimberly-Clark Corporation 102.27 -17.44 (-14.57%)KVUE Kenvue Inc. 16.16 +1.79 (+12.46%)Top economic events