Was Better Homes And Gardens Real Estate a subject of the DOJ investigation into NAR?
Better_Homes_And_Gardens_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
In a separate Department of Justice ("DOJ") investigation into NAR, on November 19, 2020, the DOJ simultaneously filed a complaint against NAR and a proposed equitable settlement that requires NAR to repeal and modify certain of its rules and policies, including certain MLS rules and policies that are the subject of plaintiffs' allegations.
The defendant franchisors are not the subject of the DOJ investigation or defendants in the DOJ complaint.
Source: Item 3 — LITIGATION (FDD pages 17–24)
What This Means (2025 FDD)
According to the 2025 Better Homes And Gardens Real Estate Franchise Disclosure Document, Better Homes And Gardens Real Estate was not a subject of the Department of Justice (DOJ) investigation into the National Association of Realtors (NAR). While the DOJ filed a complaint against NAR on November 19, 2020, regarding certain rules and policies, the FDD explicitly states that "The defendant franchisors are not the subject of the DOJ investigation or defendants in the DOJ complaint."
However, Better Homes And Gardens Real Estate, along with other franchisors such as Century 21 Real Estate LLC, Coldwell Banker Real Estate LLC, and ERA Franchise Systems LLC, were named as defendants in a class action lawsuit, Jennifer Nosalek, Randy Hirschorn, and Tracey Hirschorn, individually and on behalf of all other similarly situated, v. MLS Property Information Network, Inc. This lawsuit raises issues similar to those in other cases (Moehrl and Burnett) concerning NAR policies and rules. The plaintiffs allege a conspiracy in restraint of trade in violation of the Sherman Act.
Prospective franchisees should be aware of these ongoing legal matters, as they could potentially impact the real estate industry and the operations of Better Homes And Gardens Real Estate franchises. It is important to monitor the outcomes of these cases and understand any resulting changes to NAR policies or real estate practices. Additionally, a separate investigation by the Washington Office of the Attorney General is ongoing, concerning real estate brokerage services in Washington, which may involve past or current violations of certain state laws and the Sherman Act. While this investigation initially involves "certain of our Real Estate Affiliates," similar requests could be made to other affiliates.