The traffic on LA's 405 freeway is notoriously bad, and crowdsourced traffic apps like Waze have given drivers a way to avoid the worst parts by rerouting them down surface streets. The downside is more traffic running through neighborhoods, so a band of homeowners are screwing with Waze to keep drivers out of their hood.
According to (of all places) TMZ, homeowners in some of the more posh neighborhoods that run along 405 have gotten so fed up with the increased traffic running down their streets they're using Waze's features against it.
Residents, with apparently nothing better to do with their time, are conspiring in neighborhood meetings to report traffic, crashes, and other issues on their streets en masse. The idea being that by filing erroneous reports, the Waze algorithm will reroute drivers down another street.
Scanning through Waze's terms of service, there's nothing that explicitly prohibits this, although the company (which was purchased by Google in 2013 for $1.3B) does examine the content users post and reserves the right to remove it to "prevent publication of inappropriate or otherwise inadequate or erroneous Content". This isn't something Waze does on a regular basis, but it wouldn't be difficult to identify the dozen or so homeowners that aren't leaving their homes and reporting crashes during rush hour.