
Zillow is being sued in a proposed nationwide class-action lawsuit that alleges it misleads consumers on its site while quietly pocketing up to 40% of the buyer agent’s commission, and doing it without disclosure to either the buyer or the seller.
The lawsuit, filed by Oregon homebuyer Alucard Taylor on September 19, 2025, targets Zillow’s “Flex” agent referral program and accuses the company of violating both the Washington Consumer Protection Act and the federal Real Estate Settlement Procedures Act (RESPA).