Wyoming MLSs object to NAR settlement data sharing notice
MLS in Wyoming have some thoughts to share on Judge Stephen Bough’s recent authorization of the Gibson and Sitzer/Burnett commission lawsuit plaintiffs to send a notice to all of the MLSs that opted into the National Association of Realtors’ (NAR) commission lawsuit settlement, reminding them of their responsibilities in the settlement.
On Thursday, Cooperative Listing Service of Cheyenne, Inc., Northwest Wyoming Board of Realtors, Multiple Listing Service of Teton County Board of Realtors, Inc., Sheridan County Board of Realtors, Wyoming MLS, Northeast Wyoming Realtor Alliance and Laramie Board of Realtors, which together are referring to themselves as the Wyoming parties filed limited objections to the enforcement of part of the settlement.
The provision of the settlement at the center of their concerns states that the MLS that opted into the settlement consents to plaintiffs obtaining relevant class-member and listing data from third parties.
However, according to their objection, the Wyoming parties don’t know exactly what data the plaintiffs want, claiming that they have not received any specific subpoenas outlining the categories of information, relevant time periods, production formats, costs or intended uses. They also claim that the third-party platform providers apparently had not yet received formal subpoenas either.
According to the filing, the Wyoming parties are happy to cooperate, but want to preserve their ability to evaluate each request for information for the relevance, scope and burden, noting that the MLS database contains non-public information that should not be broadly disclosed as it may contain proprietary or sensitive information about consumers or the MLS subscribers.
Due to this, the Wyoming parties are asking the court to require the plaintiffs to provide them with a list of things including a copy of each request or subpoena for Wyoming data, the specific data fields and time periods being request, the identity of any third party that would receive the information, the purpose for which the data is being requested, protections against public disclosure of confidential, private, proprietary and security-sensitive information and protection from having to pay third-party data extraction or production costs beyond what they specifically agreed to in their settlement agreements.
Alternatively, if the court will not consent to this, the Wyoming parties ask the court to clarify its order allowing for these notices to state that a non-reply to the notice only constitutes consent after a specific request has been disclosed and determined to fall within settlement provisions and that the MLSs haven’t waived their right to challenge individual requests moving forward.
According to Judge Bough’s authorization of these notices, if an MLS does not object within seven days of receiving a notice, the lack of response would automatically count as written permission for third-party data providers to share the requested data with the plaintiffs.
The authorization of these notices came after third-party data provider Financial Business Systems (FBS), which supports MLS software platform Flexmls, refused to hand over data. According to the motion, FBS is claiming that it needs explicit permission from each MLS to hand over the data. The plaintiffs claim that FBS will not tell them which specific MLSs are refusing to give FBS the permission to do so.
If MLSs, like the Wyoming parties, decide to object to the notice, Judge Bough has said the court will resolve any dispute over the enforcement of the settlement as to that particular objecting MLS.
It is unclear when the court will issue a resolution to the Wyoming parties’ objections.
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