January 24, 2008

MLS/Computer and Business Technology Committee

Proposed Revisions of C.A.R. Model MLS Rules   [Optional]The following is for study only and has NOT been approved by the MLS/Computer and Business Technology Committee, Executive Committee, or the Board of Directors.Issue: Revision of the C.A.R. Model MLS Rules to incorporate NAR Internet-related optional changes.Recommendation:  That C.A.R. Model MLS Rules 10.2, 12.10, 12.19 and 12.20 be added or amended as set forth in these papers.Background Information:Over the past couple of years, NAR’s MLS Internet Issues Work Group has been examining areas where MLS Rules could be revised to better address certain realities of real estate in the Internet age.  At the May 2007 NAR meetings, the Work Group issued its Report, and at the November 2007 NAR meetings, MLS rules relating to recommendations set forth in the Reportwere passed.   The proposed rules set forth in theses papers are NOT mandated by NAR but are optional and recommended by C.A.R. staff.  They seek to extend or include Internet ethics and behavioral standards to the MLS, as well as address certain MLS conduct on the Internet.  They include:

• authorizing the removal of any listing from the MLS where the participant has refused or failed to timely report status changes;
• clarifying “true picture” obligations to include URLs, domain names and prohibitions against deceptive or unauthorized framing of brokerage sites, deceptive use of data, metatags, key words, etc.;
• requiring disclosure of firm name and license status on websites;
• establishing rules governing the use of the term “MLS” to make it clearer that consumers do not receive full direct access to all information in the MLS.

…12.10  False or Misleading Advertising and Representations; True Picture Standard of Conduct.  Participants and subscribers may not engage in false or misleading advertising, including, but not limited to, advertisements or representations regarding the participant's or subscriber's relationship to the service, about the service itself, or about any property listed with the service.  MLS participants and subscribers shall present a true picture in their advertising and representations to the public, including the URLs and domain names they use, and participants and subscribers may not:(a)         engage in deceptive or unauthorized framing of real estate brokerage websites;(b)         manipulate (e.g., presentingcontent developed by others) listing content in any way that produces a deceptive or misleading result; or(c)    deceptively use metatags, keywords or other devices/methods to direct, drive, or divert Internet traffic, or to otherwise mislead consumers.

…12.19  Website Name and Status Disclosure.  MLS participants’ firm websites shall disclose the firm’s name and state(s) of licensure in a reasonable and readily apparent manner.  Websites of subscribers affiliated with a participant’s firm shall disclose the firm’s name and the subscriber’s state(s) of licensure in a reasonable andreadily apparent manner.12.20  Use of the Terms MLS and Multiple Listing Service.  No MLS participant or subscriber shall, through the nameof their firm, their URLs, their e-mail addresses, their website addresses, or in any other way represent, suggest, or imply that the individual or firm is an MLS, or that they operate an MLS. Participants and subscribers shall not represent, suggest, orimply that consumers or others have direct access to MLS databases, or that consumers or others are able to search MLS databases available only to participants and subscribers. This does not prohibit participants and subscribers from representing that anyinformation they are authorized under MLS rules to provide to clients or customers is available on their websites or otherwise.

…Proposed Motion:  (If approved by the MLS Committee) That, C.A.R. Model MLS Rules 10.2, 12.10, 12.19 and 12.20 be added or amended as set forth above, subject to NAR approval.