FTC settlement would require Redfin to rebuild rental-listings business
The Federal Trade Commission and five states have filed a proposed court order that would require Redfin to rebuild its multifamily rental-listings advertising business after a 2025 agreement with Zillow.
The stipulated final order was filed Aug. 24, 2026, in the U.S. District Court for the Eastern District of Virginia. It would resolve the antitrust case without a trial or final adjudication of the allegations, but it would have the force of law only if the judge approves and signs it.
For renters and property managers, the proposed remedy is intended to restore another major platform for apartment advertising and searches. It does not directly regulate apartment rents or guarantee immediate savings.
What the FTC challenged
The FTC alleged that Zillow paid Redfin $100 million under a Feb. 6, 2025, agreement for Redfin to shut down its internet listing services business, transfer customers to Zillow and stay out of the market for as long as nine years.
Internet listing services, or ILS platforms, are digital services that aggregate and display multifamily rental properties for prospective tenants and provide advertising services for property managers. The proposed order defines multifamily properties for this case as those with at least 25 individual units available for rent.
The FTC said Zillow operated rental sites including Zillow Rentals, Trulia and HotPads, while Redfin’s rental portfolio included Redfin.com, Rent.com and ApartmentGuide.com. The agency alleged that the agreement required Redfin to end its independent competition, help transition advertising customers to Zillow and mirror Zillow listings.
Zillow and Redfin deny the allegations. The proposed order states that it is not an admission of liability or wrongdoing and resolves the case without a trial or final decision on the facts or law.
Redfin would have six months to relaunch
If entered by the court, the order would last 10 years and remove restrictions that prevented Redfin from independently selling multifamily rental advertising and displaying listings from its own customers.
Redfin would have no later than six months after the court enters the order to reenter the ILS market. To meet that deadline, the order requires Redfin to build and deploy a customer portal for rental listings, establish a billing system, hire a general manager and the required sales staff, create a sufficiently staffed and trained customer-support team, and run targeted advertising to attract property-management customers.
The order also requires Redfin to invest capital in the business and continue operating it for the period specified in a nonpublic appendix. Some investment, staffing and business terms are redacted from the public filing, so the public document does not establish the precise figures.
Zillow would have transition obligations
Zillow would have to continue providing Redfin with multifamily listing syndication consistent with its existing third-party syndication agreements. The order also bars conduct aimed at preventing or impeding an internet-listing customer from entering into a contract with Redfin.
After Redfin meets the order’s relaunch requirements, Zillow would have a nine-month customer-renegotiation obligation. Certain customers whose Zillow contracts cannot be canceled within three months would be allowed to exit or renegotiate without cost or penalty so they can negotiate with or contract with Redfin.
Zillow must notify its internet-listing customers about those rights after the FTC determines that Redfin has met the relaunch requirements. The order also places limits on future syndication agreements that restrict either company’s ability to compete for customers.
Employees could move between the companies
The proposed order includes employee-recruiting provisions intended to help Redfin rebuild its operation. For one year after the court enters the order, Zillow must cooperate with Redfin’s efforts to evaluate and offer jobs to relevant Zillow employees, including certain former employees.
Within five days of a Redfin request, Zillow must provide a list of relevant employees and available employment information, and give Redfin an opportunity to privately interview eligible workers. Zillow must also remove certain noncompete, no-poach and no-solicitation barriers that could deter employees from joining Redfin, while preserving protections for trade secrets and competitively sensitive information.
What happens next
Renters should not expect an immediate change on Aug. 27, 2026. The proposed settlement still awaits action by the Eastern District of Virginia.
If the court enters the order, the next milestones will be Redfin’s six-month relaunch deadline, its technology and staffing investments, and the later customer-renegotiation period for qualifying Zillow customers. The agencies say a stronger Redfin could increase platform choice and encourage competition, but the filing does not establish that rents or advertising prices will fall.
Sources
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