A lawsuit has been filed against Zillow alleging that the company charges an illegal ‘junk’ fee for rent payments made through its Zillow Rental Manager service. According to the complaint, this transaction fee appears at the final step of the checkout process without adequate disclosure on how to avoid it.
The lawsuit claims that the fee is not mentioned in residential lease agreements, effectively making it an unexpected additional rent charge. Plaintiffs argue that Zillow fails to inform consumers about alternative payment methods that could bypass the fee, leading them to believe it is mandatory.
Plaintiffs believe that consumers are harmed by paying this unexpected fee, which they argue provides no added value and serves only as a profit generator for Zillow. The lawsuit further alleges that Zillow was unjustly enriched and violated several consumer protection laws.
The complaint seeks to represent a nationwide class of consumers who incurred the fee, as well as classes in states with similar consumer protection laws and in Washington, D.C. Plaintiffs are requesting declaratory and injunctive relief, along with actual and statutory damages, and coverage of legal costs and expenses.
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