What is a consequence of price fixing among competitors in real estate?

Price fixing among competitors in real estate is an agreement between businesses to set prices at certain levels, rather than allowing market forces to dictate them. This practice is considered anti-competitive and is illegal under antitrust laws in the United States, including in Washington State.

When competitors engage in price fixing, they limit competition, which can lead to higher prices for consumers and stifle innovation. The primary consequence is the risk of antitrust lawsuits. Regulatory agencies, such as the Federal Trade Commission and the Department of Justice, actively monitor and take action against companies suspected of engaging in this practice. Legal repercussions can include hefty fines, damage to reputation, and potential criminal charges against individuals involved.

Understanding the legal framework that governs fair competition is essential for real estate professionals. This knowledge helps in ensuring compliance with laws designed to protect consumers and maintain a competitive marketplace.