Competition Bureau files complaint against TREB
The Competition Bureau has filed an application with the Competition Tribunal to stop what it calls “anti-competitive practices by the Toronto Real Estate Board (TREB) that are denying consumer choice and the ability of real estate agents to introduce innovative real estate brokerage services through the Internet.”
In a statement, Melanie Aitken, commissioner of competition, says, “Today, consumers are demanding a greater selection of service and pricing options when buying or selling their homes and many agents are eager to accommodate them. Yet TREB’s leadership continues to impose anti-competitive restrictions on its members that deny consumer choice and stifle innovation.”
The bureau says that “because of TREB’s restrictive practices, agents do not have the flexibility to share this important data with customers in innovative new ways, such as through password protected web sites, also called Virtual Office Web sites (VOWs). VOWs permit a customer to search a full inventory of listings containing up-to-date data online, before making the decision to tour a home or attend an open house. This enables customers to be more selective and focused, and agents to spend less time trying to find an appropriate property for a specific customer.”
The bureau says that although agents can provide detailed MLS listing information not available on Realtor.ca to customers by hand, mail, fax or email, “TREB’s anti-competitive practices effectively prevent agents from providing the same MLS listing information to customers via a password-protected website. As a result, there are currently no VOWs operating in the Toronto real estate market that enable customers to search a full inventory of listings.”
TREB issued its own statement, saying that it disagrees with the Competition Bureau’s position and “feels that it is unfortunate that the commissioner is choosing to go this route.” It says, “There are consumers on both ends of a real estate transaction where contractual and private information are involved which TREB is legally and morally required to respect.”
“TREB strongly believes in open competition and has taken numerous steps to empower Realtor members in their Internet use,” says TREB president Bill Johnston in the statement.
Aitken says, “When the bureau identifies anti-competitive behaviour, our first preference is always to reach an agreement that fully resolves our concerns. Consistent with the bureau’s practice, we shared our concerns with TREB, as well as what would be necessary to address them. Ultimately, it was necessary for us to seek a legally binding order from the Tribunal to ensure greater competition and increased innovation in the market for real estate services in Toronto and the surrounding area.”
But TREB says it will “continue its process of implementing a Virtual Office Website policy for Realtor members, which TREB began last July, quite independent of the commissioner’s approach.”
To read the full complaint, click here.
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