October 2003: Trade Union Courier
Tradeunioncourier.com

Lala Wang, founder and CEO of MLX, an online real estate listings service, this week announced her decision to make a final appeal to the United States Supreme Court to resurrect her business of enabling renters, buyers, sellers, landlords, and brokers the access and exchange of property listings, resources, and information on-demand via www.mlx.com.

Wang has spent the last eight years in a tenacious battle with state regulators over a disputed Apartment Information Vendors (AIV) license required by law of individuals selling apartment rental listings. The AIV statute is an antiquated law passed in 1975 with the original intention of preventing potential fraud in the real estate market, and without consideration for Internet-enabled business models as an alternative to traditional real estate services. In its current form, the law penalizes innovative businesses like Wang’s MLX, which offers consumers access to property listings previously available exclusively to brokers.

Wang’s online service provides consumers with more choice through access to a wider spectrum of property listings, lower costs in the form of no fee apartments, the ability to access property info and tools around-the-clock, instant email updates of new listings, and myriad other benefits for consumers seeking new apartments. “We’re essentially a matching service, so apartment seekers can both search for apartments and also place apartment “wanted ads” allowing brokers and owners to contact them directly,” noted Wang.

In a recent interview with host Tai Aguirre of the N.Y. based investigative radio program Scams-n-Scandals, Wang firmly contended that the AIV does not apply to MLX, and that compliance with such a law would force her to conduct business illegally, subjecting MLX to millions of dollars in fines each month. In agreement over Wang’s predicament, Skip Oliva, President of the Citizens for Voluntary Trade which is based in Virginia writes “Far from protecting consumers, the AIV law serves as a practical barrier to entry, especially for newer technology-based services that look to compete with established real estate brokers, or even protected forums like newspapers.”

Further, Wang’s refusal to get an AIV license on grounds that it would make her business illegal or unprofitable has resulted in New York state officials’ suspension of her real estate broker’s license. This, even after former New York Secretary of State Sandy Treadwell observed in 1995 that the AIV law was “onerous and should be amended.” In 1999, and in an about-face on this position, Treadwell changed his mind in support of entrenched real estate interests.

Currently, the state practices “selective enforcement” of the AIV law, as numerous AIV-licensed vendors commit daily transgressions for which they’re not held accountable. “The problem with the AIV law is not in trying to provide consumer protection, but in its failure to allow businesses the ability to comply with it,” noted Moshe Tal, an Oklahoma entrepreneur and advisor who supports Wang’s cause. “This conflicting application of the law hampers entrepreneurs’ ability to conduct business by undermining their competitiveness, and is a serious violation of Ms. Wang’s constitutional rights.”

Undeterred, Wang has pressed ahead in her relentless crusade as a small business owner combating oppressive and anti-competitive government regulations. She’s received the support of numerous public policy groups, including the Competitive Enterprise Institute (CEI) and the Institute for Justice. Braden Cox of CEI remarks “Ironically, in trying to enforce a consumer protection statute, New York’s state government is hurting consumers by enforcing a law that hinders innovation.”

After a recent New York state ruling which rejected her appeal challenging the secretary’s decision, Wang is set to take her case to the federal courts on the basis that she is being denied her constitutional right to freedom of speech under the First Amendment.

During the Scams and Scandals radio segment, Aguirre queried NYS Chief Council for the Division of Licensing, Bruce Stewart on why Ms. Lang’s real estate broker’s license was revoked without having received any customer complaints. “It looks to me like a clear cut case of selective enforcement and the railroading of an innovator to protect the profits of entrenched special interests” says host Aguirre.

Later this month, Lala’s many supporters will launch a grassroots Website (www.supportlala.com) dedicated to raising awareness and exposing the corrupt state government behavior against the MLX.com owner.

Contact: Sedef Onder
The Halo Project Inc.
917.570.8934

No Comments »

Trackback URI | Comments RSS