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Clear Cooperation: A Look at Industry's Most Polarizing Policy

Concerns over NAR's policy take on a new, more contentious tone amid turmoil and federal scrutiny.

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oncerns about the Clear Cooperation Policy (CCP) have been simmering since its introduction five years ago. However, with the National Association of Realtors (NAR) reeling from internal conflicts and a looming Department of Justice investigation, these concerns have taken on a more contentious tone. The policy requires brokers to enter listing information in the MLS within one business day of publicly marketing the property, aiming to create a fair and efficient marketplace.

    Despite outward acceptance, dissent surrounding the CCP has continued to brew, with industry leaders on both sides making impassioned public arguments. NAR CEO Nykia Wright asked members to stop airing their frustrations publicly, but her comments highlighted a bigger issue: NAR members are feeling more emboldened to challenge association policies.

    The early court battles over the CCP began soon after its adoption in 2020, with private listing networks ThePLS.com and Top Agent Network (TAN) filing lawsuits claiming the policy was anticompetitive and in violation of antitrust laws. Despite setbacks, the TAN lawsuit continues, while Umansky has advocated for the repeal of the CCP and threatened to refile his lawsuit.

    The Department of Justice initiated an antitrust investigation into NAR policies, including Clear Cooperation, in 2019. Although NAR reached a settlement with the DOJ in 2020, the agency began a campaign to reopen the probe a year later, which is now in the hands of the Supreme Court.

    Those fighting against the CCP claim it poses legal risks and reduces consumer choice, while proponents argue it upholds fairness and protects consumers' interests. Compass CEO Robert Reffkin called keeping the policy "reckless" due to its potential for collusion and anticompetitiveness.

    However, others argue that the policy disenfranchises sellers by limiting their ability to choose how their listing is marketed. Phillip Cantrell, founder of Benchmark Realty, stated that the CCP was created to protect smaller brokerages but disregards consumers' needs.

    In contrast, some leaders have countered that narrative, saying the push to remove the CCP is not about helping consumers but rather to keep listings off the broader marketplace for internal promotion and profit. NAR says the policy ensures brokers serve the best interest of their consumers and promotes equal opportunity for all.

    The future of Clear Cooperation remains uncertain as NAR considers industry opinions while contending with the Department of Justice investigation. The association's MLS Technology and Emerging Issues Advisory Board met to weigh perspectives but opted to take no action, passing the issue up to NAR's leadership team.

Industry leaders gather in Washington D.C. for polarizing policy discussion meeting.