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oStar CEO Andy Florance has criticized Zillow's plan to ban listings that are publicly marketed but kept off the MLS, calling it "self-serving" and an overreach. In a letter shared by CoStar, Florance claims Zillow is trying to protect its lead diversion business model, which involves selling leads to competing agents. He argues that this approach is not about protecting consumers, but rather about profiting from listings.

    Florance invites real estate agents to work with Homes.com, a rival portal that he says is "agent friendly" and gives clear credit for listings. CoStar's approach, Florance claims, follows the principle of "Your Listing, Your Lead," where only the listing agent is connected with potential buyers.

    Redfin CEO Glenn Kelman has sided with Zillow on this issue, stating that Redfin.com will not publish listings that have been publicly marketed before being shared via the MLS. This move is seen as an endorsement of Zillow's approach to ban certain private listings.

    Other top portals are weighing in on the issue. Realtor.com says it supports listing cooperation and is giving the topic "thoughtful consideration." Redfin has also called for a new "coming-soon designation" that would prevent search sites from showing how long a home has been for sale and at what prices, in an effort to encourage sellers to market their listings via the MLS.

    The controversy stems from Zillow's response to the Clear Cooperation Policy, which requires listings to be submitted to an MLS within one business day of being marketed publicly. Florance argues that real estate portals must remain neutral and not threaten agents with penalties for not listing on their site. He invites agents to contact the US Department of Justice if they feel Zillow's approach is anti-competitive.