Zillow denies its ‘interface design systematically deceives consumers’

A University of Pennsylvania Wharton professor published a paper that claims Zillow users don’t know who they’re being connected with when they select an agent, alleging that Zillow-affiliated agents drive users to Zillow’s home mortgages. 

Professor Jerry Wind’s study showed only 0.3% of users understood they would not be connected with the listing agent when selecting the tabs “Contact an agent” or “Request a tour.”

“This study provides empirical evidence that Zillow’s interface design systematically deceives consumers about a fundamental aspect of the homebuying process,” the conclusion of Wind’s paper states. 

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“[Consumers] are not contacting the listing agent. They are being routed to agents who pay Zillow for access to their information, agents who are therefore financially incentivized to steer them toward Zillow’s mortgage products.”

FOX Business sat down with Wind to discuss his findings and what he believes are the biggest takeaways.

Research by professor Jerry Wind found that almost no Zillow users realize they are not contacting the listing agent, raising concerns about transparency and incentives. (iStock/Getty Images Plus / Getty Images)

“My understanding is that the incentive is, one major incentive is that they get the name, and once they get their name and they succeed in selling the house, they have to pay Zillow up to 40% of their commission,” the professor told Fox News Digital. 

“So, that’s what Zillow gets out of this. The agent, obviously, gets a lead.

“And if the agent does not … recommend Zillow’s mortgage to the customers, Zillow, I understand, may basically stop giving them leads,” Wind continued. “So, there is a real carrot and stick here in terms of encouraging the agents to [encourage] their customers to use Zillow’s mortgage.”

Zillow maintains that buyers are not steered to its mortgage products and are always free to choose any lender that fits their needs. (Gabby Jones/Bloomberg via Getty Images)

Wind joined the Wharton faculty in 1967 and is the Lauder Professor Emeritus and a professor of marketing.

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“According to recent class action lawsuits filed in federal court, these agents may be required to meet quotas for referring buyers to Zillow Home Loans in order to maintain access to leads,” Wind’s study says. “Agents who fail to meet these quotas risk losing their primary source of business.”

Zillow was quick to deny the professor’s claims that such quotas exist in a statement to FOX Business, discrediting the study and the allegations that it forces Zillow-affiliated buyers to recommend Zillow Home Loans…