Posted in Blog
Scale or break your business. Unfair competition. It is understandable for companies to market and advertise your products, but there are limits. If you push these limits without being aware of them you might be sued for unfair competition. This is what happened to a room rental app. California AG sued Roomster app for false advertising through fake online reviews and listings. Roomster allegedly purchased thousands of fake positive reviews to promote the app.
The lawsuit alleges that Roomster committed false advertising and unfair business practices that harmed customers and potential customers. The company purchased 20,000 fake positive reviews for its app, advertising itself as “trusted by the world’s best.”
“Unfortunately, Roomster hasn’t been honest about the source of its popularity or its commitment to preventing fraud on its app,” Bonta said in a press statement. “Roomster bought fake reviews and let scams proliferate, and consumers paid the price. We’ll always fight to hold companies accountable for trying to bilk hardworking Californians.”
Authorities also discovered emails between Roomster co-founder and the owner of the review sales business AppWinn. In these emails, Shriber asks for “lots of 5-star IOS app reviews,” telling Martinez he “would like to be #1” in search results for people seeking roommates.
As you can see, unfair competition is a serious problem that can lead your business to headaches. Trust me when I say that the short way is not the best way to do things. Make sure you run your business fairly and stay on the safe side. Work with a business lawyer to get the best advice and enjoy your business. Focus Law is an established and growing law firm that helps clients with various needs, including unfair competition and corporate matters. Call us today at (714) 415-2007, or schedule a kick-off meeting by clicking here.