The Federal Trade Commission (FTC) and the state of Illinois have filed a lawsuit against Chicago-based company Premium Home Service (PHS) and its owner, Yosef Bernath, accusing them of creating thousands of fake online business listings for home repair companies nationwide. The deceptive listings and fabricated five-star reviews misled consumers into believing they were choosing legitimate local service providers.
Deceptive Business Listings and Fake Reviews
According to the complaint, PHS operated under multiple fabricated company names, creating fictitious profiles that falsely represented brick-and-mortar home repair businesses near consumers’ locations. These profiles included false local addresses—often belonging to unrelated third parties or completely made up—and targeted common search keywords like “electrical services,” “plumbing,” “heating and cooling,” and “garage door repair.”
Falsified five-star customer reviews were posted to artificially boost these fake companies’ ratings, diluting genuine one-star reviews and making the listings appear more trustworthy. Consumers who contacted the listed phone numbers were routed to representatives often located outside the U.S., such as in the Philippines, who promised service within specified time windows. However, many consumers experienced no technician visits or received unlicensed and substandard work.
Legal Violations Cited
The FTC complaint alleges that PHS and Bernath violated multiple laws, including the FTC Act by making deceptive claims about local business operations and technician availability, the Reviews and Testimonials Rule by generating and using fake reviews involving employees and relatives, and the Gramm-Leach-Bliley Act through fraudulent statements to obtain consumers’ financial information. The defendants are also accused of violating Illinois consumer protection laws.
The FTC’s Bureau of Consumer Protection Director, Christopher Mufarrige, emphasized that such deceptive conduct harms both consumers and legitimate businesses. The complaint was filed in U.S. District Court for the Northern District of Illinois after an FTC Commission vote to refer the case to the Department of Justice.
Why it matters
This enforcement action highlights ongoing concerns about fraudulent online business listings that mislead consumers and distort competition among local service providers. The case aims to protect consumers from scams that can result in lost money and unsafe home repairs, while safeguarding legitimate repair businesses from unfair competition caused by deceptive practices.
Sources
This article is based on reporting and publicly available information from the following source:
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