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.

• There is nothing improper about the FTC bringing a joint enforcement action together with the states whose own consumer protection statutes have been violated. In fact, since AMG Cap. Mgmt., LLC v. FTC, we continue to see states and the FTC working together to leverage the strength of the differing laws and remedies. (Click here for a recent example.)

• While the FTC cannot obtain monetary relief following the AMG case in a case like this brought under section 13(b) of the FTC Act, it is fine for the states to seek monetary relief in a joint action with the FTC, with the money going to the states only and not the FTC if that relief is granted.

• State consumer protection statutes have territorial limitations. In regard to...

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