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In February 2025, a significant settlement was reached in a Canadian class-action lawsuit alleging price-fixing within the real estate industry. The lawsuit accused major real estate firms and the Canadian Real Estate Association (CREA) of conspiring to inflate commission rates paid by home sellers. The settlement, valued at $1.8 billion, aims to compensate affected home sellers and reform industry practices to promote fair competition.

The legal proceedings uncovered evidence suggesting that the defendants knowingly engaged in practices that stabilized or increased broker commission rates, violating competition laws. This case mirrors similar legal actions in the United States, such as the Burnett v. National Association of Realtors trial, where plaintiffs alleged that the National Association of Realtors (NAR) and major real estate firms colluded to fix commission rates. In that trial, expert testimony highlighted that the average buyer commission rate was consistently around 3% in 95% of Missouri home sales, indicating a lack of competition. The jury ultimately awarded $1.8 billion in damages, which could be trebled under antitrust laws.

The Canadian settlement is expected to have far-reaching implications for the real estate industry, prompting a reevaluation of commission structures and promoting transparency. These legal actions underscore the importance of enforcing competition laws to prevent anti-competitive behaviors that harm consumers. As the industry adjusts to these changes, stakeholders anticipate a more competitive and consumer-friendly real estate market in both Canada and the United States.

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