Patel v. Zillow, Inc.

Website Zillow uses an algorithm to generate “Zestimates” of home values based on the home’s location, the selling price of nearby parcels, and other factors. Given the 100 million properties for which Zillow creates Zestimates, the company does not inspect whether houses have special features that might make them more (or less) valuable than the estimate. Plaintiffs, dissatisfied with the Zestimates on their homes, sue Zillow, claiming that the Zestimates have made it more difficult for them to sell the homes at their real value. Seventh Circuit: Zout of luck. Zestimates “are opinions, which canonically are not actionable” under the deceptive trade practices law the plaintiffs invoked.

Tags: 2019, Fraud, Licensing, Seventh Circuit, Statutory Interpretation

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