Zillow in the Hot Seat: Navigating a Web of Legal Challenges in 2025

Ben Aurthar
2 days ago
2 min read

In recent months, Zillow has found itself embroiled in a series of high-profile lawsuits, underscoring the legal hurdles that can accompany success in the real estate tech industry.

Here's a breakdown of the most significant cases currently facing the real estate giant:

CoStar Group's Copyright Infringement Allegations: In a lawsuit filed in July 2025, CoStar Group accuses Zillow of using nearly 47,000 copyrighted images without permission to enhance its rental listings. The case highlights the high stakes of intellectual property rights in the digital age, with damages potentially exceeding $1 billion.
Compass's Antitrust Suit: Compass launched a legal battle against Zillow in June 2025, alleging anti-competitive practices. The lawsuit targets Zillow's policy of requiring listings to appear on its platform within one business day of public marketing, which Compass argues restricts competition.
FTC and State Antitrust Actions: In a collaborative legal effort, the FTC and attorneys general from five states have targeted a $100 million agreement between Zillow and Redfin. Filed in September and October 2025, these suits claim the deal unlawfully restrained competition in the online rental advertising market.
Class-Action Over Broker Kickbacks: A November 2025 class-action lawsuit alleges that Zillow's Premier Agent program forced agents to meet quotas for Zillow Home Loans to access high-value leads, violating federal and state consumer protection laws.
Hidden Fees Class-Action Claim: In September 2025, another class-action suit accused Zillow of obscuring referral payments to affiliated agents, thus inflating the cost of home purchases. This case raises crucial questions about transparency in online real estate transactions.
Expansion of Flex Program Allegations: An existing class-action complaint against Zillow's Flex referral program expanded in November 2025 to include racketeering claims, with new plaintiffs and defendants added to the case.

As Zillow navigates these turbulent waters, the outcomes will likely have significant implications not only for its business model but for the broader industry as well.