Defense of Commissions

WAV Group
Published: 07/30/2012
Posted by: RET Staff

American business is founded on the principle that pricing for a product or service is based upon what a willing seller will accept, and what a willing buyer will pay. This happens on an individual basis with each transaction, and price fixing is not allowed. Recently, Casey William Hyland, who purchased a home from a Home Services of America brokerage--Semonin REALTORS®, brought a suit challenging the 6% commission rates on real estate transactions. His claim indicated that the 6% rate was price fixing and is a Sherman Anti Trust Act Violation.

When there are multiple transactions of commerce, pricing patterns emerge. Consider the grocery store shelf. Within a given product category of similar items, pricing becomes normalized around a price point, plus or minus 20%. This trend happens everywhere, in every industry, and well beyond the grocery isle.

The Plaintiffs claims were articulated as follows: