Proptech firm Roomster, in which the website tells people they can "Find and rent your perfect room," faces a big legal attack. The Federal Trade Commissions and six states—California, Colorado, Florida, Illinois, Massachusetts, and New York—have all filed suit against the company, its principals, and a third party.

Seeking a permanent injunction as well as monetary and other relief under various federal and state laws, the plaintiffs said that Roomster and owners John Shriber and Roman Zaks "allegedly duping consumers seeking affordable housing by paying for fake reviews and then charging for access to phony listings," said an FTC press release.

"The complaint alleges that Roomster and its owners have taken tens of millions of dollars from largely low-income and student prospective renters who need reliable housing the most and can least afford to lose money," it continued.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.