Last week, CEO Bess Freedman received a Cease and Desist letter from Compass in the wake of two opinion pieces she wrote for RisMedia and Inman News around the importance of co-brokering, the spirit of CCP, and the dangers of private exclusive networks. “The sharing of opinions and information is a fundamental underpinning of free markets; trying to stifle discussion is suppressive and a bully tactic,” wrote Freedman in a new opinion piece for RisMedia.
Compass’ letter cited their own research and denied that their private exclusive network “was intended to promote pocket listings while increasing their commissions” and claimed that her “rhetoric is dangerous for agents, sellers’ choice, and free market competition.”
In response, Brown Harris Stevens pointed to Article One, Section 8 of the NY State constitution which guarantees freedom of speech and press, stating that every citizen can freely speak, write and publish their sentiments.
The truth is, there is great debate in the real estate industry right now that warrants discourse and discussion. “I do not need people to agree with me; in fact, I welcome disagreement and discussion as I’m always willing and open to improve our industry. We should be engaging in open dialogues, not attempting to silence dissenting opinions,” offered Freedman.
20 years ago, in NYC, brokerages had a chance to develop an MLS but some of the larger firms felt better-served keeping listings internal. Chasing greed led to the birth of StreetEasy, which is now where most agents, buyers, sellers and renters begin their real estate searches. In the end, the leads were taken away from the brokerages.
As the past instructs the future, there is reason to sound the alarm when brokerages once again fight to control and hoard inventory. “Our industry works best when there is complete transparency and sharing of information so that everyone knows what is out there. Because real estate agents represent sellers and buyers, it is our duty and obligation to act in the best interest of our client which often commands a public listing,” Freedman wrote.
At the end of the opinion piece calling for less stifling of opinions and more open dialogue, Compass confirmed to RisMedia that they sent a Cease & Desist letter with the following statement: “When a competitor writes an op-ed calling a company a Trojan Horse, the minimum response they should expect is a Cease and Desist.”
