Compass Will No Longer Adhere To Clear Cooperation, Other Nar Mls Policies

Compass’s crusade against the National Association of Realtors’ (NAR) Clear Cooperation Policy (CCP) continues. 

On Tuesday, the Robert Reffkin-helmed firm informed local MLS and NAR leadership that it “does not consider the Clear Cooperation Policy or any national NAR MLS rule impacting clients as binding,” and that it “has not and will not adhere to CCP or any national NAR MLS rule.”

In an email sent to NAR and MLS leaders, Reffkin noted that Compass voted against the policy when it was introduced in 2019. 

“Since CCP’s inception, Compass has consistently acted to demonstrate its non-adherence to the policy’s consumer restrictions, utilizing Compass Private Exclusives and Compass Coming Soons to provide consumers with broader choices and options to market properties outside of NAR’s MLSs,” Reffkin wrote. 

Reffkin added that Compass has consistently lobbied NAR and local MLSs for the removal of the policy, claiming that it is anti-competitive and anti-consumer in nature. Some of these efforts, which Reffkin highlighted in his email, include issuing a demand letter to Bright MLS in October 2019 as it implemented the policy early, discussing the company’s opposition to the policy with representatives from the Department of Justice and formally proposing the removal of the rule to NAR’s Emerging Issues Committee. 

“For many years, Compass repeatedly warned the industry of the legal risk of rules like CCP, especially from future class actions. In the coming years, the risk is significant that the industry could face class actions that are distinct from the currently pending compensation-focused cases, with the potential for a significant amount of damages.”

Reffkin states that despite this formal declaration, nothing is really changing for Compass agents who he claims are “trained to comply with local MLS regulations, not national NAR mandates restricting client options.”

Instead of following NAR’s MLS policies, Reffkin said that “Compass will continue to determine on a market-by-market basis whether to require its listing brokers to submit listings on a multiple listing service within any specific timeframe. These decisions are made based solely on Compass’s own business interests, independent of NAR and any other brokerage.”

NAR did not return a request for comment.

This is Compass’s latest move in its battle against CCP. The brokerage is currently in the middle of two legal battles, one with Northwest MLS and another with Zillow over the two firms’ listing policies, which do not allow Compass to use parts of its three-phased marketing plan.