Why isn't my Local/State/National association doing something about ...............?!

I see this question often on various social media posts, groups, forums, etc., Any major change happens in the industry, and a lot of REALTOR® members suddenly expect their association to become a knight in shining armor to save them from the evil that is encroaching on their version of normalcy.

But have you ever stopped to think about the question? Why would EVERY Local, State, and National Association be silent on such large topics?

The short explanation - is that it's illegal.

For the longer explanation, you have to consider the purpose of the MLS. The purpose of the MLS is to be a data platform that encourages cooperation and competition through driving innovation that brings value to its membership.

Next, consider the Sherman Act, which is the basis of all anti-trust laws in the United States. In short, the Sherman Act outlaws "trusts," which are groups of businesses that collude or merge in order to dictate pricing in a particular market. It also outlaws the actions of trusts, such as creating artificial barriers to entry, group boycotts, or any other kind of collusion that hinders competition.

Every member of an Association or MLS, whether a brokerage or a licensee, is in effect their own business. Associations and MLSs are, in effect, groups of businesses, and if they took any action intended to slow down, stop, prohibit, or otherwise impede competition, they would be in very clear violation of the Sherman Act. That is why if ANYONE meets all of the qualifications for membership, and they approach the Association or MLS to become a member, the only correct answer is "Welcome, we're glad to have you!"

But let's talk about purpose. Even if the Sherman Act wasn't a reality, and anti-trust laws were not enforced, "should" the MLS do something? Remember, the stated purpose of an MLS is cooperation and competition. A MLS facilitates offers of cooperation and compensation in an orderly marketplace which creates efficiencies for buyers, sellers, agents, brokers, and brokerages with comprehensive and accurate data. This is why the concept of the MLS, and the REALTOR®, have fended off decades of lawsuits and challenges, because even though we technically are a collective "trust," the MLS creates efficiencies and benefits to consumers far beyond that of any country without a REALTOR® or MLS framework. We drive these efficiencies and benefits through innovation, and innovation only happens when there is competition.

So this brings us back to our question, if a new member comes to the MLS with a new business model in mind that is innovative, and may or may not work, why should the MLS say no? If the MLSs of the past ever became comfortable with the status quo, we may still be printing listing books. I would make the case that it is the MLS's job to not only accept these newcomers but to encourage them, even without considering anti-trust law.

In the Memorandum of the recent court case involving The PLS.com, LLC v. NAR, et al there was a quote that really resonated with me, it said:

"...the fundamental principle that antitrust laws were enacted for ‘the protection of competition not competitors’” Brunswick Corp., 429 U.S. at 488 (quoting Brown Shoe Co. v. United States, 370 U.S. 294, 320 (1962))..."

I feel like that is the fundamental principle of the MLS as well. The job of the MLS is not to protect the competitors that use it. It is to protect the competition that drives all of them forward. Because competition drives innovation, and innovation drives efficiencies and benefits.

So, if you're asking the question "Why isn't my Local/State/National Association doing something about ....................?!" -- then you are asking the wrong question.

What you should be asking is "What the h*** am I going to do about this change in order to keep competing?" Because the answer to that question is the only thing that really matters.

Richard Gibbens is the SWMLS Director at GAAR. Richard hails from Panama City, Florida, and has been involved with CMLS and RESO to help drive the MLS industry forward. Richard, his wife Kayla, and young daughter Claire are happily adjusting to the red and green. Richard is a long-suffering fan of the Miami Dolphins, a Florida Gators alumni, an avid LEGO fan, and enjoys trail riding in his Jeep.