Consumers were defrauded by the company offering fictitious listings.
The Federal Trade Commission (FTC) has reached a settlement permanently prohibiting Roomster Corp. and its owners from purchasing or incentivizing consumer reviews. The settlement follows charges that the company acquired fake reviews to attract consumers into paying for access to rental listings, marketed as verified and authentic, that were often fraudulent.
In collaboration with attorneys general from six states, the FTC also alleged that Roomster and its owners employed fictitious listings on platforms like Craigslist to redirect consumers to Roomster where they paid fees for advertised listings that did not exist.
“Today’s settlement bans Roomster and its owners from buying or incentivizing reviews, cuts off their ability to blame phony listings on their affiliate marketers, and requires them to pay monetary judgments to our six state partners,” said the FTC’s Bureau of Consumer Protection Director Samuel Levine. “Baiting renters with fake reviews and bogus listings harms those trying to find an affordable place to live and cheats honest competitors, undermining the online marketplace.”
As the Lord Leads, Pray with Us…
- For Director Levine as he seeks to prevent consumers from being scammed.
- For officials within the Bureau of Consumer Protection as they pursue companies that defraud the public.
- For Chair Lina Khan to seek God’s guidance as she heads the Federal Trade Commission.
Sources: Federal Trade Commission
