A new lawsuit alleges Zillow used its monopoly power to charge high referral fees and pressured agents to channel homebuyers into its lending business.

The lawsuit filed Friday in the U.S. District Court for the Western District of Washington comes as Zillow defends itself against other lawsuits filed by homeowners alleging similar practices.

Stephanie Dupuis, owner of the Dupuis team, claims in the lawsuit that Zillow overcharged her Silverdale, Washington, agency on commission fees and later retaliated after she refused to steer clients toward the home loans program.

The Dupuis Team receives referrals from Zillow through a program called Preferred Agent, which connects potential buyers to agents when they request to tour a property.

Despite the program being an essential source of business for the agency, the team has struggled with “substantial” membership costs and stipulations, according to the lawsuit.

Dupuis’ attorney, Ryan McDevitt with the law firm Keller Rohrback, claims in the lawsuit that Zillow flexes its monopoly power to charge excessive commission fees of up to 40% when the industry norm is 25%.

“Agents are effectively forced to do business with Zillow because of its vast market power…” McDevitt wrote.

In a statement Tuesday, a Zillow spokesperson said its referral fees are consistent with industry practices and do not prevent buyers from negotiating fees with their agents.

“This complaint tells a one‑sided story that does not reflect how Zillow Preferred partners serve buyers or how we work with real estate agents,” the spokesperson said.

Additionally, the lawsuit claims the Dupuis Team saw a drop in referrals after Zillow ramped up pressure on agents to push their clients toward its lending business, Zillow Home Loans.

By integrating its home lending with an agent program, Zillow has seen purchase loan origination volume increase 2.6 times, according to the company’s 2024 annual report.

Dupuis claims that she had to sign up for another program that gives lenders access to client information, or be kicked out of the Preferred Agent program.

She worried the program would “compromise her duties to clients by divulging confidential information,” according to the lawsuit, but was forced to participate in the program to keep receiving Zillow’s connections.

Still, she would not pressure her clients to choose one lender over another, according to the lawsuit.

“Based on Ms. Dupuis’s concerns with Zillow’s practices and respect for her duties to clients, she and her team refused to steer clients toward (Zillow Home Loans),” McDevitt wrote.

Due to the Dupuis Team’s low Zillow Home Loan pre-approvals rates, Zillow capped the number of connections the agency would get per month. Zillow also terminated her access to another product that enhances the visibility of listings, the lawsuit claims.

The lawsuit alleges that Zillow violated state and federal antitrust law and seeks a class action status for all United States residents who were enrolled in Zillow’s Premier, Preferred or Flex Agent programs. It requests unspecified financial compensation and for Zillow to give up any profits gained from the practices.

Dupuis and her attorney declined to comment.

The Zillow spokesperson said consumers are always in control of which agent and lender they work with, and that Zillow supports agents who deliver strong outcomes for buyers by sharing clear information and helping them understand what they can afford.

“We will defend ourselves against these claims, while we stay focused on delivering a better real estate experience for buyers, sellers, renters and the professionals who serve them,” the spokesperson said.

The complaint is the latest in a flurry of legal challenges that have slammed Zillow within the last year.

In September, a homebuyer who used a Zillow agent filed a lawsuit, claiming the company illegally tricks homebuyers into working with its agents who owe a large chunk of their commission to Zillow — a transaction not disclosed to homebuyers.

In November, another homebuyer sued Zillow for allegedly pressuring her to take out a home loan through Zillow, which her agent led her to believe was her only lending option, the lawsuit claims.

Zillow, which says it accounts for two-thirds of monthly unique visits to real estate websites, has also been accused of anticompetitive actions.

Last fall, the Federal Trade Commission as well as five other states, including Washington, sued Zillow and Redfin for allegedly conspiring to eliminate competition for rental housing listings. The lawsuits came months after the companies had announced a $100 million deal for Zillow to become the exclusive provider of multifamily rental listings on Redfin.

Zillow has denied any wrongdoing.

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