On May 11, 2026, the Federal Trade Commission announced that the U.S. Department of Justice, on its behalf, and the state of Illinois had sued a Chicago-based company called Premium Home Service and its owner. The complaint alleges the company created thousands of online business profiles for home repair companies that don't exist, then propped them up with fabricated five-star reviews.
The short version: a listing with a local address and a high star rating can be manufactured. A recommendation from a real client in your own network is much harder to manufacture. Below is what the complaint alleges, how to spot a ghost listing, and what to do before you hire.
What the FTC and Illinois allege
According to the FTC's press release, titled "FTC and Illinois Take Action to Stop Deceptive Conduct by Company that Created Thousands of Business Listings of Fake Local Home Repair Businesses," the case targets B.E.S.T. GDR LLC, which does business as Premium Home Service (PHS), and its owner. These are allegations in a complaint, not findings by a court.
Made-up companies with borrowed addresses
The complaint alleges that since at least 2018, PHS has operated around the country using scores of fabricated company names. It allegedly presented itself as an established brick-and-mortar company near where consumers live. The complaint says the online profiles were for non-existent home repair companies, typically not registered with the state, and that their local addresses belonged to unrelated third parties or were made up.
Fabricated five-star reviews
The complaint also alleges the defendants posted fabricated five-star reviews that appeared to come from customers. According to the FTC, those reviews were used to dilute legitimate one-star reviews from actual customers and artificially boost overall ratings.
Tens of thousands of diverted consumers
The complaint alleges that tens of thousands of consumers looking for local home repair help were diverted to these profiles, which used common search terms like "electrical services," "plumbing," "heating and cooling" and "garage door repair."
The phone call that wasn't local
According to the complaint, people who called what looked like local numbers were routed to representatives elsewhere, including in the Philippines. Those representatives typically promised a "technician" within a time window, often without knowing whether one was available. In many cases, the complaint says, no one showed up. In other cases, PHS allegedly sent technicians who were not licensed or qualified, resulting in subpar and at times dangerous work.
The laws involved
The complaint alleges violations of the FTC Act, the FTC's Reviews and Testimonials Rule, the Gramm-Leach-Bliley Act (by allegedly making false statements to obtain consumers' financial information) and Illinois consumer protection laws. The case was filed in the U.S. District Court for the Northern District of Illinois.
Why this matters every time you search for a pro
This case is a reminder of a basic weakness: an online listing tells you what a business says about itself, and star ratings can be inflated by whoever controls them. Neither tells you who actually did the work, or whether anyone you know would hire them again.
When your water heater fails or your garage door won't open, you're often in a hurry. That's exactly when a polished listing with a "local" address and a perfect rating is most tempting, and when it's worth slowing down for five minutes.
How to spot a ghost listing or lead-gen operation
No single sign proves a listing is a problem, but several together should make you pause.
- No real local address. Look the address up on a map. A house, an empty lot or an unrelated business is a red flag, and so is a listing with no address at all.
- A generic name. Names built from just a trade, a region and a buzzword like "Pros" or "24/7" are easy to spin up by the dozen.
- A name that doesn't match. If the name on the truck, the invoice or the technician's shirt doesn't match the listing you called, ask why.
- A call center answering. If whoever picks up can't tell you the company's address, who will come out, or the technician's name, you may be talking to a dispatcher rather than the business itself.
- No license number. Legitimate licensed pros can give you a license number on request. Vague answers are a warning.
- A perfect rating that feels too uniform. Bursts of short, similar five-star reviews say very little, and this case shows how ratings can be manipulated.
What to do before you hire
Ask people you know first
Ask neighbors, friends, family and coworkers who they've actually hired. Ask follow-up questions: What did they fix? Did the final price match the quote? Would you hire them again? A friend can answer those questions. A listing can't.
Verify the license yourself
Requirements vary by state and by trade, so check with your state's licensing board. Many states offer an online contractor license lookup, such as California's Contractors State License Board at cslb.ca.gov. Make sure the name and license number match the business you're actually dealing with.
Get a written estimate
Before any work starts, get a written estimate with the company's legal name, address, phone number and license number, plus the scope of work and price. If a business won't put it in writing, keep looking.
Don't hand over payment details too early
The complaint's Gramm-Leach-Bliley Act claim centers on allegedly false statements used to obtain consumers' financial information. Be cautious about sharing card or bank details over the phone before you've confirmed who you're dealing with.
Report it
If you think a listing or business misled you, report it to the FTC at ReportFraud.ftc.gov. You can also contact your state attorney general's consumer protection office.
Why a promotion from a real client is different
A listing can be created in minutes. A rating can be inflated. A real client who knows you, vouching for a pro they've hired, is much harder to manufacture.
That's the idea behind MY PRO: TRUSTED PROS®, a social & professional networking app launching in November 2026. Instead of relying on listings and star ratings, pros are promoted by their real clients. You see pros promoted by people in your own network, up to second-degree connections, so there's a trust pathway in place before you hire: you can see who in your network vouches for a pro and how you're connected.
For pros, it means visibility built on real client relationships rather than on who can spin up the most listings.
FAQ
What is Premium Home Service accused of?
According to the FTC, the complaint alleges that Premium Home Service (B.E.S.T. GDR LLC) and its owner created thousands of online profiles for non-existent local home repair companies, posted fabricated five-star reviews to dilute real one-star reviews, and routed callers to representatives elsewhere, including in the Philippines. These are allegations, not court findings.
What is a ghost listing?
It's a common term for an online business profile that doesn't reflect a real, local business at the address shown. Some are created by lead-generation operations that pass your call to someone else.
How can I tell if a home repair company is real?
Check that the address is real, that the name matches the truck and invoice, and that the license number checks out with your state's licensing board. Best of all, ask people you know who they've hired.
Can I trust star ratings for home repair?
Be skeptical. This case alleges ratings were inflated with fabricated reviews, and even honest reviews come from people you can't ask follow-up questions. A recommendation from someone you know, plus your own license check and a written estimate, is a stronger basis for hiring.
Where do I report a misleading listing or business?
Report it to the FTC at ReportFraud.ftc.gov, and consider contacting your state attorney general's consumer protection office.
Follow along
MY PRO: TRUSTED PROS® is launching in November 2026. Follow @mypro.app on Instagram for more.