Louisiana Real Estate Professionals File Lawsuit Against NAR Over Forced Memberships
Baton Rouge, LA – A group of Louisiana real estate professionals has filed a federal lawsuit against the National Association of Realtors (NAR) and several state and local real estate associations, alleging anticompetitive practices and reputational harm linked to the organization's scandals.
Filed on January 2, 2025, in the U.S. District Court for the Middle District of Louisiana, the suit lists Carla DeYoung, a real estate broker, and agents Tammy Jo Williams, Darlene Currie, and broker Carlos Alvarez as plaintiffs. The defendants include NAR, the Louisiana Realtors Association, and a series of regional boards and multiple listing services (MLSs), such as the Greater Baton Rouge Association of Realtors, the New Orleans Metropolitan Board of Realtors, and the Realtor Association of Acadiana. Kenneth Daman, Executive Vice President of the Greater Baton Rouge Association of Realtors, is also named individually.
Allegations of Anticompetitive Practices
The plaintiffs allege that NAR and its affiliates enforce a "three-way agreement" requiring real estate professionals to join national, state, and local associations to access essential MLS data. This practice, they argue, creates unnecessary financial burdens and limits market participation for those unwilling or unable to pay for multiple memberships.
The lawsuit highlights that MLS access is vital for conducting business in the real estate industry, and forcing association memberships amounts to monopolistic behavior.
Damage to Professional Reputation
In addition to anticompetitive concerns, the plaintiffs cite reputational damage stemming from recent NAR scandals. The complaint references public controversies involving harassment claims, accusations of antitrust violations, and reports of excessive spending by NAR leadership. According to the plaintiffs, these issues have negatively impacted the standing of real estate professionals affiliated with NAR by association.
Legal Demands
The plaintiffs are seeking:
Injunctive Relief to prevent MLSs from requiring mandatory memberships for access.
Treble Damages of at least $10 million for financial losses and reputational harm incurred as a result of the alleged practices.
NAR Responds to the Lawsuit
In response to the filing, NAR issued a statement to Inman News, emphasizing that the organization does not mandate MLS access be restricted to NAR members. "MLSs are operated at the local level, and each MLS determines individual participation requirements," the statement clarified.
NAR added that they will address the specific claims made by the plaintiffs in court.
The case is being closely monitored by industry professionals, as it could have significant implications for real estate association practices and the broader structure of MLS access across the United States.