When Adrian Paull and his spouse moved into a Scottsdale, Arizona rental last yr, they expected a short-term rental to serve as a snug touchdown pad while they searched for their next home. Instead, they say they discovered black mildew and unfinished repairs. After posting sincere online critiques, they were also served a shock invoice for $4,000.
The critiques, it turns out, had violated a clause buried deep in the couple’s 21-page lease that fined tenants $2,000 per “negative” post, including online critiques rated less than three stars.
Paull is now sounding the alarm about an subject many renters might not know is unlawful: Companies penalizing prospects for sincere suggestions.
“Reviews are how we hold companies accountable,” Paull instructed Phoenix’s 12News. “So corrupting the review process is absolutely unlawful.”
And he’s proper. The Consumer Review Fairness Act (CRFA), handed in 2016, protects U.S. customers from exactly this sort of retaliation.
Here’s what occurred and what you should do if a landlord or business tries to advantageous you for a damaging review.
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Paull and his spouse bought their home in North Scottsdale in 2023 and signed a lease at a close by rental managed by Denali Real Estate. They moved rapidly, hoping to give themselves a snug cushion of time before their official move-out date.
But issues went south fast.
“When we lifted a piece of furniture in the master bedroom, there was an enormous patch of black mold,” Paull said. The couple left immediately and requested Denali to repair the subject.
When they returned, Paull claims the issues weren’t resolved: partitions still had holes, sections of carpet were lacking, and sharp carpet tacks were uncovered on the ground. Fed up with what he described as unresponsiveness from the company, Paull turned to Google and Yelp to share his expertise.
Instead of a response, he says his $2,200 rental credit abruptly flipped to a $1,800 steadiness due. The cause? Two $2,000 “non-disparagement” penalties.
Their lease prohibited “negative online reviews, negative ratings of 3 out of 5 stars or less and negative posts on all social media and review platforms.” Violating this clause, it warned, would set off a $2,000 advantageous per incidence.
Why that clause is doubtless unlawful
The CRFA makes it unlawful for firms to implement contract clauses that punish customers for sincere critiques, whether online or offline. That means if you post a truthful review, a company can’t legally advantageous, threaten or retaliate against you for it, even if it’s damaging.
The Federal Trade Commission (FTC) has introduced enforcement actions against companies that attempt to use “gag clauses” in contracts. Violators may face civil penalties and court orders. If you’re a renter or buyer, that means:
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You can’t be fined or penalized for a review just because it’s damaging.
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You can file complaints with the FTC, your state’s attorney common, and the Better Business Bureau (BBB).
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You should save any documentation — contracts, emails or invoices — if you plan to dispute the charge.
As of publication, Paull has filed complaints with the Arizona Attorney General’s Office, BBB, and says he plans to contact the FTC.
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Denali Real Estate backs down, but the harm may be achieved
After 12News reached out for remark, Denali Real Estate issued a assertion saying it takes “all feedback seriously” and submitted its lease settlement for legal review. A few hours later, the company said it would take away the non-disparagement clause from its contracts “immediately.”
Still, it stays unclear whether Denali will drop the prices against Paull.
The company claims it made a number of makes an attempt to repair points at the rental, but says Paull repeatedly denied access to contractors and restore groups. Paull disputes that model of occasions — and says the property stays uninhabitable, with storm harm and even animal feces current inside the unit.
Whatever the end result, one factor is clear: what occurred to Paull is half of a broader subject dealing with renters, and customers in common.
What to do if a company tries to silence your review
If you’re ever threatened with legal or financial penalties for leaving a review, here are the steps you can take:
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Know your rights: The Consumer Review Fairness Act makes it unlawful for companies to implement “gag clauses” in shopper contracts. If your lease or service settlement accommodates one, it’s unenforceable, even if you signed it.
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File complaints with the proper businesses: Start with your state’s attorney common. You can also contact the FTC and the Better Business Bureau:
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FTC Complaint Assistant (https://reportfraud.ftc.gov/)
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Arizona AG Consumer Complaints (https://www.azag.gov/complaints/shopper)
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BBB File a Complaint (https://www.bbb.org/file-a-complaint)
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Save all documentation: Keep copies of the lease, emails, and any prices or correspondence tied to the dispute. You’ll need them if you resolve to pursue legal motion or dispute prices with a credit card company or bank.
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Don’t be afraid to converse up: Reviews are protected speech. If a company makes use of intimidation ways to bury sincere suggestions, they may be the ones violating the law, not you.
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