Frequently Asked Questions and Answers Regarding the Competition Bureau Inquiry
Please find the following frequently asked questions and answers around the Competition Bureau Inquiry. We truly appreciate the patience members have shown during this period and as we wait on more information. NSAR will continue to keep members updated as more details are provided.
What is going on with the Competition Bureau?
CREA’s membership approved the current “Interpretations” in 2007, which deal with the acceptance of listings on Boards’ MLS® Systems. In March of 2007, the Competition Bureau initiated a formal inquiry (which followed ongoing informal investigations by the Bureau) and obtained a court order requiring CREA to produce, among other things, documents related to CREA’s rules and the operation of Boards’ MLS® Systems. On October 20th, 2009, CREA representatives were advised by the Bureau that the Commissioner of Competition had completed her inquiry.
What is the Competition Bureau proposing?
The Competition Bureau has requested that CREA change certain Rules and Interpretations that deal with the acceptance of mere postings on Board MLS® Systems (i.e., where the agreement between the listing agent and the seller is that the listing agent will not provide services other than listing the property on a Board’s MLS® System).
What will happen if CREA does not agree to the Competition Bureau’s Proposal?
The Competition Bureau has said that if CREA does not remove these restrictions the Commissioner of Competition will initiate an application before the Competition Tribunal, which is a quasi-judicial body that can, among other things, make orders requiring or prohibiting certain conduct (e.g., requiring rule changes).
What is CREA’s position?
CREA is awaiting additional information from the Competition Bureau about its proposed resolution and is reviewing the matter to gain a better understanding of the ramification of the proposed changes. CREA’s position is that Boards’ MLS® Systems are and should remain member-to-member systems. A settlement with the Bureau regarding the changes to CREA’s Rules would be subject to member support.
Are media reports accurate?
Some media are reporting that there has been a settlement with the Competition Bureau or that CREA has changed its MLS® Rules resulting in Boards’ MLS® Systems no longer being member-to-member systems. These media statements are incorrect.
CREA has not reached a settlement with the Competition Bureau and CREA has not changed its MLS® Rules and Interpretations.
What is CREA doing about adverse media?
There is high volume of media attention with considerable misunderstanding and misinformation. As this is a legal matter, CREA has deliberately chosen not to comment while discussions with the Bureau are ongoing but continues to actively monitor media activity and respond as needed to correct misinformation. This strategy is reviewed on an ongoing basis.
What should I say if a member of the public calls asking to list his or her home on an MLS® System without working with a REALTOR®?
The member of the public should be told that the media has inaccurately reported that a proposed resolution between CREA and the Competition Bureau would result in members of the public being able to access a Board’s MLS® System to list their homes for sale without the involvement of a REALTOR®. This is incorrect. A Board’s MLS® System is a system for REALTOR® members of the Canadian Real Estate Association. If that person would like to list a property on the MLS® System, they should contact a REALTOR®.
What are the timelines for a settlement agreement or if the matter goes to the Competition Tribunal?
Timelines are unknown at this point but we will continue to update members as the matter progresses.