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Zillow Faces Class-Action Lawsuit Over Deceptive Homebuyer Fees

9/20/2025

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Story summary
  • A class-action lawsuit against Zillow alleges deceptive practices that inflate homebuyer costs via its Flex referral program.
  • The suit claims Zillow charges agents up to 40% for transactions, a fee not disclosed to buyers or sellers.
  • Filed in the U.S. District Court for the Western District of Washington, it could affect homebuyers using Zillow-affiliated agents in the past four years.
  • Plaintiffs argue these practices violate Washington State consumer protection laws and exhibit monopoly behavior.
  • The lawsuit seeks class-action status, a jury trial, and treble damages, with Hagens Berman representing the plaintiffs.