Zillow Wins Dismissal of Lawsuit Challenging its 'Zestimate' Feature

Zillow Wins Dismissal of Lawsuit Challenging its ‘Zestimate’ Feature

A U.S. District Judge dismissed a federal lawsuit in Chicago challenging the accuracy of Zillow Group’s online estimates of home values, known as Zestimate, according to Reuters. A disgruntled Illinois-homeowner had sued Zillow, alleging that its Zestimate feature underestimated the value of his home by over $100K, which obstructed his efforts to sell.

U.S. District Judge Amy St. Eve, however, said Zestimates are a mere “starting point” that are unlikely to confuse homebuyers, pointing to disclaimers by the Seattle-based company that they may be inaccurate and are not official appraisals.

 St. Eve said, however, that the plaintiffs may try to replead three claims, including for Zillow’s alleged invasion of privacy for posting their homes on its website without permission.