What is the name of the first class action complaint filed against Remax and other entities?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
A number of putative class action complaints were filed against the National Association of Realtors ("NAR"), Anywhere Real Estate, Inc. (formerly Realogy Holdings Corp.), HomeServices of America, Inc. ("HSA"), RE/MAX, LLC and Keller Williams Realty, Inc ("Keller Williams"). The first was filed on March 6, 2019, by plaintiff Christopher Moehrl in the United States District Court for the Northern District of Illinois (the "Moehrl Action"). Similar actions have been filed in various federal courts. The complaints make substantially similar allegations and seek substantially similar relief. For convenience, all of these lawsuits are collectively referred to as the "Moehrl-related antitrust litigations." In the Moehrl Action, the plaintiffs allege that a NAR rule that requires brokers to make a blanket, non-negotiable offer of buyer broker compensation when listing a property, results in increased costs to sellers and is in violation of federal antitrust law. They further allege that certain defendants use their agreements with franchisees to require adherence to the NAR rule in violation of federal antitrust law. Amended complaints added allegations regarding buyer steering and non-disclosure of buyer-broker compensation to the buyer. While similar to the Moehrl Action, the Moehrl-related antitrust litigations also allege: state antitrust violations; and claims against a multiple listing service ("MLS") defendant rather than NAR.
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the first class action complaint filed against Remax and other entities was filed on March 6, 2019, by plaintiff Christopher Moehrl in the United States District Court for the Northern District of Illinois, and is referred to as the "Moehrl Action". The complaint alleges that a National Association of Realtors (NAR) rule requires brokers to make a blanket, non-negotiable offer of buyer broker compensation when listing a property, resulting in increased costs to sellers and violating federal antitrust law. The complaint further alleges that certain defendants use their agreements with franchisees to require adherence to the NAR rule, also in violation of federal antitrust law.
The Moehrl Action also includes allegations regarding buyer steering and non-disclosure of buyer-broker compensation to the buyer. Similar lawsuits, referred to as the "Moehrl-related antitrust litigations," also allege state antitrust violations and claims against a multiple listing service (MLS) defendant rather than NAR.
For a prospective Remax franchisee, this information indicates potential legal and financial risks associated with operating a Remax franchise, particularly concerning compliance with antitrust laws and NAR rules. Franchisees should be aware of these ongoing legal challenges and how they might impact their business practices and profitability. It is important to stay informed about the outcomes of these litigations and any changes to NAR rules or Remax's policies that may result from them.