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. A report by the Wall Street Journal on Monday revealed that a number of major US banks and credit card companies were using third-party firms to place ads alongside those from real estate agents who are paid commissions 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.