The drama over the National Association of Realtors' online real estate listing policies is intensifying again in the aftermath of news about a federal antitrust investigation into the matter.

NAR said it is cooperating with an investigation by the antitrust division of the U.S. Justice Department, which is interviewing a number of real estate industry executives about the Realtor group's Virtual Office Web site (VOW) and Internet Data Exchange (IDX) policies. Chicago attorney Robert Butters this past week said DOJ officials interviewed two of his clients in the past month. A former deputy general counsel for NAR who represents a number of real estate brokerages, Butters said he personally attended the interviews.

At issue is NAR's VOW policy, which dictates how brokers can share real estate listings with one another for online use in VOWs. The policy, enacted earlier this year, includes a controversial opt-out option that lets brokers have some control over which other brokers display their listings on a particular Web site.

In a press release, NAR reiterated its position that its IDX and VOW policies are "lawful and appropriate." But the issue has sharply divided the industry over the past year.

Critics, including Web-based discount realty firms that advertise lower commissions to consumers, argue brokers could misuse or abuse the selective opt-out option in a way that might violate antitrust laws.

"We found it hard to believe that anyone that really understands VOWs was not expecting this," said Russell Capper, founder of Texas discount brokerage eRealty and an opponent of NAR's opt-out provisions.

Capper said eRealty met with DOJ officials. The debate over opting out of VOWs has already reached the courts. In August, Novi, Mich.-based Home Quarters Real Estate, which offers consumer rebates, filed an antitrust lawsuit against MI Resource, a local MLS that had pulled its data feed from Home Quarters' VOW.

Home Quarters CEO Kyle Hoylman said last week he was aware of the DOJ's investigation.

"We have not met with the Department of Justice, but we are aware (they are) contacting other folks in the industry and asking them to comment on the VOW matter," he said.

In its statement, NAR said its VOW policy "protects the integrity and security of (MLS) data, respects sellers' rights to privacy and maintains the viability of the MLS system" The NAR board of directors approved the policy at its midyear meetings in May.

The policy "is the result of over a year of research and careful deliberation by two NAR work groups," the association stated.

NAR General Counsel Laurie Janik has said a Chicago law firm specializing in antitrust issues reviewed the proposal while it was being drafted and found it to be legally sound.

Following news of the DOJ investigation, two of the largest residential real estate firms last week reaffirmed their support for the opt-out provision.

"We supported the NAR policy that was voted into effect last May," said Mark Panus, a spokesman for Cendant, which owns the ERA, Century 21 and Coldwell Banker realty brands. "There's been no change."

In a white paper drafted earlier this year, Cendant argued that VOWs will force traditional brokerage companies to pay referral fees to "third-party" companies, thus it will hurt the "operational viability" of "certain" businesses and "drive local real estate brokerages and agents out of business."

RE/MAX International, in April issued its own position on VOWs, calling on NAR to add the broker opt-out option.

"We're aware that there's this investigation, and certainly any questions the Department of Justice might have, we'd be prepared to respond to," said Steve Squeri, a RE/MAX spokesman. "We certainly support the policy and believe it's a lawful policy and pro-competitive."

Butters wouldn't identify which of his clients have been interviewed by DOJ officials, but he said they have been concerned with NAR's policy in the past.

"None of this should come to a surprise to anybody, I would think," he said. "That's just my view."

Michael Davin, EVP of Hermosa Beach, Calif.-based CataList Homes, opposes the opt-in, opt-out features of NAR's policy and wasn't surprised by the DOJ's interest in it.

"I know the NAR went through great troubles to kind of have this VOW regulation blessed by antitrust attorneys," Davin said. "But I definitely see problems in the opt-in, opt-opt that will result in lawsuits…which will unfortunately leave the MLSs to deal with the mess."