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*Key Takeaways**
- A legal expert notes that Zillow’s new ChatGPT‑integrated app is hard to assess against IDX rules, as those rules were drafted before AI existed.
- Zillow claims it underwent a “painstaking” review with lawyers from dozens of MLSs to ensure compliance.
- Whether the National Association of Realtors (NAR) will lead the discussion or individual MLSs will decide remains unclear.
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### Zillow’s Bold Move
Zillow recently launched an application inside ChatGPT that pulls MLS listings directly into the chatbot. The move feels natural as users increasingly treat chatbots as search engines, but it throws a wrench into a regulatory framework that was written in 2000. The IDX rules, which dictate how MLS data can be displayed, were never meant to cover AI‑driven interfaces.
### The Age‑Old Rules in a New World
IDX regulations focus on prohibitions—what brokers cannot do with MLS data—rather than encouraging innovation. Russ Cofano, co‑founder of Alloy Advisors, argues that the rules should be re‑examined to determine if they still serve the industry or merely hinder progress. The current framework is largely reactive, addressing basic websites, mobile apps, and audio, but not the complex data flows enabled by AI.
### Legal Uncertainty
Mitch Skinner of Larson Skinner Law explains that the Zillow‑ChatGPT integration is “not an easy task” to evaluate. The policy simply did not anticipate this technology, making compliance analysis difficult. Skinner adds that the responsibility ultimately falls on the roughly 500 MLSs nationwide, each with its own enforcement procedures. NAR’s October 21 statement reiterates that each MLS must independently assess technologies that use and display MLS data.
For MLSs whose IDX rules already accommodate technologies beyond simple web and mobile interfaces, the integration might be compliant. However, Skinner urges all MLSs to consider the broader implications and to develop AI‑specific policies rather than merely patching existing ones. “The technology is impressive, and MLSs don’t want to be Luddites,” he says.
### The Need for AI‑Focused Policy
The Council of Multiple Listing Services (CMLS), representing 235 MLSs, agrees that IDX policy was written in a different era and must evolve with technology. They call for a robust discussion on how current rules apply and emphasize the importance of technology‑agnostic policies that protect data while fostering innovation. The balance between stewardship and progress presents an opportunity for MLSs to lead.
### Zillow’s Compliance Journey
Errol Samuelson, Zillow’s chief industry development officer, described a “painstaking process” to ensure MLS compliance. He first consulted a group of five MLS attorneys representing 30–50 MLSs nationwide, walking them through the app and gathering feedback. The attorneys concluded that the app looked “really good.” Zillow then worked with its legal team, which includes former MLS executives, to refine the integration.
However, this ad‑hoc approach is not how policy is normally set. Victor Lund, co‑CEO of WAV Group, explains that NAR’s Multiple Listing Issues and Policies Committee convenes annually, bringing together brokers, agents, lawyers, MLS executives, and technologists to debate changes. This deliberative process has historically ensured careful, collective decision‑making. Lund supports new AI‑specific rules but believes they should emerge from NAR’s committee rather than from individual MLSs.
Samuelson acknowledges that NAR’s current rule‑change process is “very complicated.” He calls for standardization and streamlining, though not so rapid that vendors are constantly disrupted. He sees room for innovation within the existing framework.
### NAR’s Role and the Shift Toward Local Autonomy
NAR’s appetite for policy debate has waned amid antitrust lawsuits and regulatory scrutiny over its MLS rules. MLSs now rely more on local discretion. Skinner notes that while MLSs look to NAR for guidance, the association is granting more autonomy to local MLSs to assess legal risks. Danny Frank, a former Houston Association of Realtors chair, filed a complaint about the Zillow‑ChatGPT integration and urged HAR to collaborate with other Texas MLSs to establish clear AI‑era data governance standards. He prefers local MLSs to lead, ensuring that their members’ interests are protected.
### Looking Ahead
The Zillow‑ChatGPT integration has sparked a broader conversation about how IDX rules should adapt to AI. The industry faces a choice: continue patching old regulations or create new, technology‑agnostic policies that safeguard data while embracing innovation. MLSs, NAR, and technology providers must collaborate to navigate this evolving landscape, ensuring that the benefits of AI are realized without compromising the integrity of MLS data.
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