It seems so obviously flawed that I'm wondering if that isn't a key part of the value proposition. Boondockers and more recently Vanly already provide a very similar service (RV/Van parking on private property), but aren't limited to California and don't have the pseudo-barter system requirement.

I'm wondering, is there some sort of California-specific tax/zoning loophole that allows this but doesn't allow nightly rentals ala Vanly or Boondockers? It's the only way that this makes sense to me.