One of the core functions of MLS is to help subscribers cooperate and making sure all subscribers follow the MLS rules designed to minimize participant conflict is a key part of this function. One of the places conflicts play out most publicly is in arguments over IDX and VOW displays. Yet, a number of MLSs do not have a compliance program in place, and others are uncertain of their compliance practices. I think that’s why, when Clareity recently surveyed MLSs asking which of our services they planned to use in 2015, one of their most common responses was our IDX and VOW compliance services. Compliance is growing increasingly difﬁcult, especially since MLS rules seem increasingly out of touch with innovations such as social media and installed apps. Following are some tips to help MLSs do a better job with IDX and VOW compliance reviews. Some of these may already be on the radar for my regular readers, but there are some new tips as well.
First of all, hard as it may be to shake off the habit, let’s not call these things “compliance audits” anymore, at least with subscribers. Using the word “audit” brings up bad memories people may have of certain government agencies and an inquisitorial way of doing things. Let’s call them “compliance reviews,” which is a much more neutral way of referring to them.
In keeping with this spirit, it’s important that, as far as possible, reviews be conducted consistently, not just in response to a perceived problem. “Complaint-based” reviews often lead to accusations of unfairness and even persecution. If MLSs consistently review sites and apps within a speciﬁc time period after they go live, and at speciﬁc times after that, it is harder for complaints such as, “the MLS picks on me because I am a discount broker,” to stick. If an MLS is just implementing a compliance program, I usually suggest that the leadership’s sites be reviewed ﬁrst. After all, nothing is worse than having an antagonistic subscriber who is able to retort, “The MLS president’s site does it the same way – she’s out of compliance but you’re not doing anything about her!”
It is important for an MLS not just to have rules, but also a formal legal agreement with brokers governing VOWs and IDXs. The agreement is where the “rubber meets the road,” the last word on mutual rights and responsibilities. It’s the best place to clarify any vague parts of an MLS’s VOW/IDX policy and describe auditable criteria. The agreement sets out rules and responsibilities; the times when reviews may take place; how compliance and other costs are accounted for; what it takes to comply; the time during which a compliance problem can be remedied (“cure period”) and what happens then; and the criteria on which a site will be reviewed. The agreement will also have all the standard legal clauses concerning assignment, governing law, notices, and severability, and other required language. Many of the IDX and VOW agreements Clareity sees from MLSs lack much of the speciﬁcity required to be successful with a compliance program. This is an area to consult both with your business consultant and your attorney.
Again, VOW and IDX policies can be vague, and give rise to disputes if not speciﬁed more clearly.
For example, how should acceptance of the Terms of Service be handled? There is a spectrum of options that range from having a document linked to from inside a signup form all the way to having a text area with the terms where the user is forced to scroll to the bottom and nominally read them before she can check off a box marking her acceptance and move forward. What options are acceptable, and are you enforcing them consistently?
What is “appropriate security protection?” For which security criteria are sites tested? APIs have opened up a huge new area of vulnerability. What criteria apply to them? What issues can be let slide, and what issues must be ﬁxed?
What does it mean to have “anti-scraping” protection and monitoring? Scrapers have grown radically more sophisticated with time, and measures you may be writing into your agreement, and which you may be offered by some IDX vendors, may only protect against the kinds of attacks that were common years ago.
There are also many areas where the IDX and VOW rules need to be updated and ambiguity decreased. What does it mean for the display of IDX data to be a “Participant’s display?” Ambiguity in this area is causing signiﬁcant conflict in the industry these days. Who is a “Consumer”? I know at least one company that would say that a federal agency and other businesses are their “Consumer” – certainly not what was intended by policy writers.
Technology marches forward, creating increasing conflict with our aging rules. For an installed “app”, does the VOW process of email conﬁrmation make sense, and should an installed app require the VOW username / password each time the app is opened? What’s reasonable? Consumers are becoming used to signing up for sites & apps using their social media login, which flies in the face of many of the VOW rules related to signups and logins. Do we need to engage with both NAR and DOJ to make changes to VOW rules?
The items above are just a few of many areas where MLSs must take care when implementing an IDX and VOW compliance practice. As they say, the devil is in the details! But, throughout the process of IDX and VOW compliance reviews, also keep the big picture in mind: attitude is everything. Be friendly and respectful to all subscribers and their vendors. Be merciful to the very occasional and obviously accidental violators. Remind them that rule compliance reviews are an MLS service to make sure that everyone is playing by the same rules in order to reduce conflict among subscribers. If you follow this guidance, you will be more successful with your compliance program.