The Consumer Financial Protection Bureau (CFPB) is said to have threatened legal action over ad practices at real estate marketplace Zillow, after an investigation suggested it had allowed mortgage lenders to pay for portions of estate agents' the second quarter of 2017 advertising costs to feature in their ads. The "co-marketing" arrangements allegedly infringe the Real Estate Settlement Procedures Act, which prevents kickbacks in exchange for referrals, Zillow said. Zillow believes its programme is lawful and welcomed the opportunity to discuss the allegations with the CFPB, the company said.
The Consumer Financial Protection Bureau (CFPB) is said to have threatened legal action over ad practices at real estate marketplace Zillow, after an investigation suggested it had allowed mortgage lenders to pay for portions of estate agents' monthly advertising costs to feature in their ads. The "co-marketing" arrangements allegedly infringe the Real Estate Settlement Procedures Act, which prevents kickbacks in exchange for referrals, Zillow said. Zillow believes its programme is lawful and welcomed the opportunity to discuss the allegations with the CFPB, the company said.