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ARTICLE · 10 FEBRUARY 2023

FTC And State AGs Can Continue Joint Case Over Fake Reviews

Kelley Drye & Warren LLP
Kelley Drye & Warren LLP
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Kelley Drye & Warren LLP

Kelley Drye & Warren LLP

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Fake reviews continue to be a hot topic in consumer protection. In 2022, we reported that six states and the Federal Trade Commission filed a lawsuit against Roomster...

United StatesConsumer Protection
Paul Singer
Paul Singer
Abigail Stempson
Abigail Stempson
Gonzalo E. Mon
Gonzalo E. Mon
Beth Bolen Chun
Beth Bolen Chun

Fake reviews continue to be a hot topic in consumer protection. In 2022, we reported that six states and the Federal Trade Commission filed a lawsuit against Roomster – a platform through which people can find rooms and roommates – along with its owners, alleging that they had "inundated the internet with tens of thousands of fake positive reviews to bolster their false claims that properties listed on their Roomster platform are real, available, and verified." At the same time, the regulators announced a settlement with an individual who allegedly sold Roomster many of the fake reviews.

Roomster then filed a motion to dismiss and in early February, the court denied the motion. While the denial is no surprise, there are some key takeaways from the order.

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