Can a brokerage be held responsible for the actions of individual agents? They may be if it is determined by a judge that they helped coach the agents to violate the Telephone Consumer Protection Act banning them from making unsolicited, auto-dialed calls to consumers without their consent, including those listed on the Do Not Call Registry.
While some homeowners find these calls to be unwelcome, prospecting Expireds is a sound way to build a pipeline of business for many real estate agents. They see it as an opportunity to help homeowners sell their home by choosing to change agents.
One California plaintiff wants to put an end to the practice, stating he felt harassed by agents who cold-called him after his home’s listing expired. He filed a class action lawsuit against a giant in the real estate industry, NRT LLC and Coldwell Banker LCC.
The lawsuit claims NRT and Coldwell Banker coached agents within their brokerages in how to make cold calls. It also claims they supplied agents with scripts to use and gave them the technological tools they needed to gain access to homeowner’s phone numbers.
If the lawsuit is allowed to proceed, the class action would be open to anyone who has been called in the same manner as the plaintiff in the past four years. It would also include those listed on the Do Not Call registry who were also called. The fines could range from $500 to $1500 per violation.
It’s an interesting lawsuit to watch considering agents are independent contractors. Can their brokerage really be held responsible for the calls they make?
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