A coalition of community groups has filed a complaint with the U.S. Federal Trade Commission charging that Zillow.com, a real estate Web site that provides home-value estimates, is misleading consumers and industry professionals about the accuracy of its automated tools. Officials at Zillow have countered that the accusations "are groundless," and the company clearly explains the role and accuracy of its estimates at its Web site.
The complaint states that the coalition's audit found that Zillow's valuations, called Zestimates, "are accurate less than 30 percent of the time," while the site allegedly states or implies that values for "the home they are researching, the communities they are interested in, and for recent comparables is accurate to within 10 percent of value."
Recent Comments