FTC and Illinois Take Action to Stop Alleged Deceptive Conduct by Company Related to Purported Fake Business Listings

May 12, 2026 / Richard B. Newman

On May 11, 2026, the Federal Trade Commission announced that the U.S. Department of Justice, on behalf of the FTC, and the state of Illinois sued Chicago-based company Premium Home Service and its owner for allegedly fraudulently creating thousands of fake online business listings for home repair companies to purportedly deceive consumers into thinking they were choosing reputable local companies for home repairs.

The complaint also alleges that company and its CEO and owner posted fabricated five-star reviews that appeared to be from customers of the fake companies.  The company allegedly used  made-up five-star reviews to dilute legitimate one-star reviews from actual customers, artificially boosting the overall ratings of the listed companies.

“[The company’s] use of fake business profiles and reviews violates federal and state laws, harming consumers and businesses,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “The Trump-Vance FTC is committed to addressing deceptive conduct that harms the American people and undermines competition.”

Since at least 2018, it is alleged that the company has operated around the country using scores of fabricated company names, according to the complaint.

The complaint alleges that the company pretends to operate as an established brick-and-mortar company located near where consumers live.  To market its services, the company allegedly has created thousands of online business profiles for non-existent home-repair companies, which are typically not registered with the state.  The local addresses in these profiles allegedly belong to unrelated third parties or are made up, according to the complaint.

Tens of thousands of consumers searching for local home repair service companies have been diverted to the defendants’ business profiles, which include common keywords used to search for such services, including “electrical services,” “plumbing,” “heating and cooling” and “garage door repair,” the complaint alleges.  Consumers who reach the defendants’ business profiles allegedly see fabricated five-star reviews and ratings designed to encourage them to select that company for service.

According to the complaint, consumers that attempt to call local phone numbers for local businesses are instead allegedly routed to representatives located elsewhere, including in the Philippines.  These representatives allegedly tell consumers a “technician” can be dispatched to their address within a particular window of time.  Often, however, the representatives allegedly do not know whether any technician is available and, in many cases, no one shows up at the consumers’ homes.  In other cases, the company allegedly arranges for technicians who are not licensed or qualified to perform the job, resulting in subpar—and at times dangerous—work.

Based on this conduct, the complaint alleges that the defendants violated:

  • the FTC Act by making deceptive claims about being a local home-repair business operating from a specific address, making deceptive claims about sending technicians on a specific date and time from a local business, and making deceptive claims related to fake reviews;
  • the Reviews and Testimonials Rule by writing, creating, buying, or selling fake reviews and seeking and using fake reviews from employees and relatives; and
  • the Gramm-Leach-Bliley Act by making false, fictitious, or fraudulent statements to obtain consumers’ financial information.

The complaint also alleges PHS violated Illinois consumer protection laws.

The Commission vote to refer the civil penalty complaint to the Department of Justice for filing was 2-0.  The Department of Justice filed the complaint on behalf of the Commission in the U.S. District Court for the Northern District of Illinois. Commissioner Mark R. Meador issued a statement on this matter.

Richard B. Newman is an FTC compliance and defense attorney at Hinch Newman LLP. 

Informational purposes only. Not legal advice. This article is not intended to and should not be construed as legal advice. May be considered attorney advertising.

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Richard B. Newman

Richard B. Newman is a nationally recognized FTC advertising compliance, CID investigation and regulatory enforcemetn attorney. He regularly provides advertising counsel and represents clients in high-profile investigations and enforcement proceedings initiated by the Federal Trade Commission, state attorneys general, departments of consumer affairs, and other federal and state agencies with jurisdiction over advertising and marketing practices. Richard is also an ecommerce lawyer and spam defense attorney. His practice additionally focuses upon false advertising defense, data privacy, cybersquatting, intellectual property law and transactional matters relating to the dissemination of national advertising campaigns, including the gamut of affiliate marketing, telemarketing, lead generation, list management and licensing agreements. Richard advises clients on how to minimize the legal risks associated with digital marketing, email marketing, telemarketing, social media influencer campaigns, endorsements and testimonials, negative option marketing models, native advertising, online promotions and comparative advertising,

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