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As an adjunct to its enforcement activities, the FTC also undertakes competition advocacy to encourage government decision-makers at all levels to evaluate both the costs and benefits of their policies for consumers to ensure such policies promote consumer welfare. As part of the competition advocacy program, the FTC, along with the Department of Justice Antitrust Division, has sent letters to officials in Texas, Missouri, Alabama, and Michigan, encouraging them not to adopt minimum-service laws, which mandate a minimum number of real estate brokerage services that a consumer must purchase when entering into a relationship with a real estate agent. In our letters, we have noted that these laws would reduce consumer choice and likely lead to higher prices for real estate brokerage. Further, in reviewing minimum-service brokerage proposals in several states, we have not encountered any evidence of consumer harm from limited service brokers (for example fraud or misfeasance) that would justify these minimum-service laws.


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Last Updated: Monday, July 13, 2009 3:40 PM

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