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  "docSlug": "de028a1085e6",
  "documentTitle": "Zillow Group, Inc. (Z)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-03-05 00:00:00",
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  "notes": "Includes a screenshot of a Zillow contact form highlighting a pre-checked box as evidence of the alleged dark pattern.",
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      "kind": "callout",
      "text": "Automatically opting-in customers for information is an aggressive practice according to our research and could catch the CFPB’s scrutiny. Zillow has faced previous scrutiny from CFPB regarding RESPA in 2018.(1)\n\nIf Zillow were found to be in violation of RESPA, Zillow could be required to cease and desist its current mortgage referral practices. It is unclear if Flex partners would still refer leads to Zillow Loans or would Zillow be forced to abandon or completely rethink its Enhanced Market and Super App strategy.",
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      "kind": "callout",
      "text": "Automatically opting-in customers for information is an aggressive practice according to our research and could catch the CFPB’s scrutiny.",
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      "text": "Zillow contact form with pre-checked box",
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      "text": "We believe Zillow is pushing the cross-sell of mortgages onto its Flex partners through Zillow Home Loans, which increases the risk that it fails to comply with the Real Estate Settlement Procedures Act (“RESPA”). Under RESPA, it is illegal to provide anything in value in exchange for mortgage leads. This includes direct compensation, free subscriptions, and in Zillow’s case buyer agent leads. In addition, the “I want pre-approval information from ZHL” box is checked by default which is really an option to opt-out rather than opt-in. Spruce Point interviewed an expert familiar with the Consumer Financial Protection Bureau (“CFPB”) and its enforcement practices. According to the source, the CFPB has been very interested in these digital “Dark Patterns” which steer consumers into granting something they may not want.",
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      "text": "(1) Zillow 8-K and Zillow listing page.",
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      "kind": "title",
      "text": "We Believe Zillow Mortgage Could Potentially Face CFPB Scrutiny Again",
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