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View Full Version : Woman Fined $3500 for Leaving a Negative Review Online



Teh One Who Knocks
11-18-2013, 12:51 PM
Lacey Donohue - Gawker


http://i.imgur.com/izAa6dN.png

Like many consumers who have had a bad experience, Jen Palmer wrote a review online in 2008 after the Christmas presents her husband ordered from Kleargear.com never arrived. Years later, thanks to her online review, the couple is facing a damaged credit score and a $3,500 fine.

When the items Palmer's husband ordered in 2008 didn't ship within 30 days, the PayPal transaction was automatically canceled. However, Palmer still left a review on RipoffReport in early 2009 detailing her experiences with trying to reach the company's customer service:


A company like yours, while catering to geeks, should first and foremost understand that while electronic communication is nice, there are inevitably times that human contact is necessary. At this point, the only thing I can determine is that your customer service department, in fact, your whole company, is so busy returning voicemails from disgruntled customers that they are inable to take live calls of any kind.

But three years later, Palmer's husband received an email from Kleargear.com demanding that the post be taken off RipOffReport or the couple would face a fine. Apparently, Palmer violated a non-disparagement agreement hidden within the terms of sale on the Kleargear website. The clause read:


"In an effort to ensure fair and honest public feedback, and to prevent the publishing of libelous content in any form, your acceptance of this sales contract prohibits you from taking any action that negatively impacts kleargear.com, its reputation, products, services, management or employees."

According to KUTV, the clause (it's no longer on the website) also said that if the consumer violates the contract "they will have 72 hours to remove your post or face a $3500 fine. If that fine is not paid, the delinquency will be reported to the nation's credit bureaus."

When a scared Palmer contacted RipoffReport to remove the posting, she was allegedly told it would cost her $2000 to get the review taken down.

Because the couple could not pay either the fee or the fine, their credit score was dinged by Kleargear. Palmer reports that she and her husband are now getting rejection letters from lenders as they apply for a loan to fix their car and their furnace.

KUTV looked into the company and found that in 2010, the company had an "F" rating with the Better Business Bureau for "not delivering products purchased online in a timely manner." Today Kleargear has a "B" rating. When the reporter contacted an unidentified employee at Kleargear via email, the employee defended the $3,500 charge and said that when they asked Palmer to take down the review or face a fine, they were not blackmailing her: they claim they were making a "diligent effort to help them avoid [the fine]."

The couple cannot afford a lawyer, but KUTV has put them in touch with media relations people at a credit bureau in the hopes that they can successfully appeal the credit ding.

Making the situation even more disgusting, TechDirt has done more research and found that Kleargear's non-disparagment clause may not have even existed when Palmer's husband made his order:


According to the Internet Archive, that clause didn't exist in 2008, when Jen wrote her review, so there's no way the company can claim that charge is legitimate, even by its own shady metrics. It actually doesn't appear until June of 2012, suggesting that its battle to raise its BBB rating wasn't going as well as it had hoped, but rather than overhaul its customer service, it decided to bill its way back to the top at $3,500 a review.

In the meantime, the attention on this case has driven more people than usual to the Kleargear website. Apparently consumers are unable to resist the pull of a good "Geek T-Shirt," even if the company is a sack of garbage. On the front page of the site, the president of Kleargear has written "WHOA! Due to an unexpected and short increase in recent order volume, orders with Standard Shipping will temporarily leave Kleargearland in up to 48 business hours."

Goofy
11-18-2013, 01:01 PM
Fuck sake :lol:

FBD
11-18-2013, 01:10 PM
talk about desperate. blacklist these fuckers

RBP
11-18-2013, 02:01 PM
That's insane.

Muddy
11-18-2013, 02:48 PM
Wow...

Acid Trip
11-18-2013, 04:29 PM
They had the equivalent of an NDA buried in their purchasing agreement? That's incredibly shady.

minz
11-18-2013, 04:47 PM
Given that the company didn't deliver and were therefore in 'breach of contract' then surely the couple can't be bound by a contract that Kleargear didn't keep? :shock:

Hal-9000
11-18-2013, 07:18 PM
Given that the company didn't deliver and were therefore in 'breach of contract' then surely the couple can't be bound by a contract that Kleargear didn't keep? :shock:

this...


and that small print saying - leave a review but don't leave a disparaging remark is kinda one sided :lol:

deebakes
11-19-2013, 03:16 AM
:facepalm:

Teh One Who Knocks
12-18-2013, 08:51 PM
By SUSANNA KIM - ABC News


A Utah couple is suing an online merchant that fined them $3,500 for writing a negative review and sparked a financial nightmare for more than a year by reporting the alleged debt to credit rating companies.

Jen and John Palmer filed a lawsuit today against KlearGear.com in a Utah federal court, charging that the company violated the Fair Credit Reporting Act, defamation, intentional infliction of emotional distress and other actions.

"In sum, KlearGear attempted to punish a dissatisfied customer for his wife's criticism of KlearGear, then abused the credit reporting system in an attempt to extort money that the customer did not owe and could not possibly have owed," the Palmers' lawsuit states.

The story goes back to December 2008 when KlearGear.com didn't deliver Jen Palmer's online Christmas order of a desk ornament and keychain that cost less than $20. Jen Palmer, now 40, wrote a negative review on private business review site RipoffReport.com, saying KlearGear.com had "horrible customer service practices."

Last summer, her husband, a senior network engineer, received an email from KlearGear.com demanding $3,500 pursuant to a non-disparagement clause that it claimed was in its "Terms of Use" on its website.

The Palmers say they asked RipOffReport to take down the negative review, but the site has an arbitration process that requires the involvement of the business. The couple say they shared this information with KlearGear.com, but the company didn't respond.

The Palmers refused to pay the fine, prompting KlearGear.com to report their "debt" to one or more credit reporting agencies, the suit claims. When the Palmers disputed the debt with several credit reporting agencies, KlearGear.com continued to maintain that the debt be paid and then demanded a $50 "dispute fee" because they attempted to dispute the debt, the couple claims.

KlearGear.com did not respond to a request for comment.

The Palmers said the mark on their credit history affects their ability to obtain loans, most recently for a financing plan for a new furnace. As a result, in October, the couple and their 3-year-old son were without heat for three weeks until they saved the $1,900 to buy a furnace, the told ABCNews.com.

"KlearGear's unscrupulous conduct has affected every aspect of our lives, from major financial transactions like financing a new home purchase and a car purchase, to basic needs like heat in our home," John Palmer said in a statement. "For weeks, we bundled our son in blankets every night just to keep him warm in his own bedroom. We are fighting not only to clear my credit record and obtain compensation for our ordeal but also to make sure that no one else has to go through what we did."

Besides the debt to KlearGear.com, Palmer said she and her husband have maintained a good credit history.

After the Palmers took their story to a local television station, the nonprofit advocacy group Public Citizen volunteered to represent the couple, sending a letter last month to KlearGear.com, threatening to file a lawsuit against the e-commerce site unless it fixed the situation with a deadline of Dec. 16.

In the letter by Scott Michelman, staff attorney with Public Citizen who is representing the Palmers, the Palmers demanded that KlearGear.com inform the three major credit reporting agencies that their debt was in error, to compensate the Palmers $75,000 and not to include its "non-disparagement clause" going forward.

Michelman also said that the "non-disparagement" clause was not even on the website when John Palmer placed his order in 2008.

Hal-9000
12-18-2013, 09:25 PM
damn....I just did a transaction with my phone provider and they sent a survey


I crucified them in 1000 words or less :lol: and it was all true....


basic premise - you change phones, they're supposed to give you a 50 dollar hardware credit.

what they do is - charge you 50 for 'activation' then give you a form with a mailing address (8-10 weeks turnaround time) for the supposed 50 dollar credit. The rebate is also supposed to appear in your online account as a link. I checked for 7 working days, no link. Called twice, said give me my credit. They refused saying ' the link will appear'. It didn't.

Now the charge shows up on my monthly bill. It's a horrible scam and I wrote a barn burner of a note :lol: The rebate link appeared the next day on my account....

DemonGeminiX
12-18-2013, 10:25 PM
Companies shouldn't be allowed to pull horseshit like this. I hope the couple wins their lawsuit against them.