FTC says Roomster posted fake reviews and misled customers about listings

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When searching for a place to live — or a person to live with — honest and trustworthy information is vital. And reviews about platforms that can supposedly help you in your search should be, well, honest and trustworthy too. But according to the FTC and six states suing Roomster and its owners, the room and roommate finder platform posted reviews and other information that was neither.

The lawsuit announced today alleges Roomster posted fake positive reviews and made deceptive claims about its listings being real, available, and verified — to convince people to use its platform. The FTC and states also announced an action against “AppWinn” operator Jonathan Martinez, who the complaint alleges supplied thousands of the fake reviews to Roomster.

When a company has a lot of fake, glowing reviews online, they can dilute real ones that describe customers’ actual experiences. This can make it tough for people to make informed decisions about which products or services to buy and use. Here, Roomster’s customers — mostly students, people with lower incomes, and those living in areas with little affordable housing — have ended up paying millions of dollars for information on rentals that often didn’t even exist.

So if you’re looking at online reviews for housing or anything else:

• Think about the source of the reviews you’re reading. What do you know about the reviewers that makes them trustworthy?
• Compare reviews from a variety of well-known sources, not just one site. Start with websites recognized for having credible and impartial reviews.
• Search online for the company name along with terms like “complaint,” “scam,” or “fraud” to see what issues others might have had.

If a company makes false or misleading claims, report it to the FTC at ReportFraud.ftc.gov.

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