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Richard
11-16-2013, 09:55
Something to ponder when doing e-business... :mad:

Richard

Woman Gets $3,500 Fine And Bad Credit Score For Writing Negative Review Of Business
YNews, 15 Nov 2013

In 2009, Jen Palmer’s husband bought her some Christmas gifts from KlearGear.com. When the merchandise still hadn’t arrived a month later, PayPal closed the transaction and refunded her money.

Palmer tried to contact the company to inquire about the order, but couldn't get in touch with anyone. Frustrated, she wrote a critical review of the company on RipoffReport.com and moved on.

But as KUTV reports, KlearGear.com resurfaced three years later and has turned Palmer’s life upside down, slapping her with a $3,500 fine and reporting her to the nation’s three major credit agencies.

"This is fraud," Palmer told the station. "They're blackmailing us for telling the truth."

Here’s what happened. Tucked away in the agreement language almost no one ever reads, was a clause stating that anyone who buys something from the website agrees to never publicly criticize the website.

The exact language reads:

"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."

However, on some review sites individuals claim that the clause only went into effect in 2013, meaning that Palmer should be exempt from the fine policy. Interestingly, review sites also contain a number of mixed to negative customer reviews but only this one mention of the company actually issuing a fine to a customer.

And the actual language from the clause has since been removed from Kleargear's website.

In fact, the company may be facing some heat for bragging about it's own reviews. The Better Business Bureau has issued an alert against KlearGear saying the company has falsely claimed to have received an A+ rating from the BBB. "As of November 28, 2012, the BBB became aware that the company's website is displaying a BBB Accredited Business logo and BBB Rating A+," reads a statement on the BBB website. "However, the company is not an accredited BBB business and the BBB rating is not A+."

As of November 28, 2012, the BBB became aware that the company's website is displaying a BBB Accredited Business logo and BBB Rating A+; however, the comapny is not a BBB accredited business and the BBB rating is not A+. - See more at: http://www.bbb.org/western-michigan/business-reviews/novelties-retail/kleargear-in-grandville-mi-38143064#sthash.w85vkPeA.dpuf

As of November 28, 2012, the BBB became aware that the company's website is displaying a BBB Accredited Business logo and BBB Rating A+; however, the comapny is not a BBB accredited business and the BBB rating is not A+.

Still, someone from the company contacted Palmer’s husband via email and told him he had 72 hours to remove her critical review from the site Ripoff Report, or face the $3,500 fine. Her review read in part, "There is absolutely no way to get in touch with a physical human being" at the site, adding that they have, "horrible customer service practices."

Nonetheless, Jen Palmer actually contacted Ripoff Report but that site demands $2,000 to remove a post.

Naturally, Palmer refused to pay the fee. Then, she found out that not only had Klear Gear imposed its arbitrary fine, but they had reported the “failure to pay” status to the major credit bureaus.

And the credit bureaus haven’t been helpful either, refusing to remove the mark from her husband's credit score. Jen Palmer says that she and her husband are now receiving rejection letters from lenders as a result of the negative mark on their credit score.

So, the Palmers now find themselves at the mercy of three unresponsive entities: the website that fined them for exercising their First Amendment rights, the review site that refuses to remove her post and the credit bureaus, which are taking the side of the website over a customer who may be the victim of corporate fraud. In the meantime, KUTV has put the Palmers in contact with a media relations representative at Experian, in an attempt to resolve the situation.

"I have the right to tell somebody else these guys ripped me off," Palmer said.

http://news.yahoo.com/woman-gets--3-500-fine-and-bad-credit-score-for-writing-negative-review-of-business-233833012.html

GratefulCitizen
11-16-2013, 10:09
What contract?
The transaction was cancelled.

If they were sent a bill, it's false billing through the mail.
Someone could go to jail for that.

Trapper John
11-16-2013, 11:54
I doubt that "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." is enforceable in most states (it is not libelous if it is true). Clear denial of Jen Palmer's due process IMO. If that language were in a contract it would be deemed unenforceable. What do you lawyers think?

Moreover, KlearGear's arbitrary fine and false reporting to the credit agencies should provide enough actual damages and a basis for a hefty civil suit against KlearGear seeking actual and punitive damages. I'm not a litigious person, but this sort of hubris is just over the top IMO.

Badger52
11-17-2013, 07:12
I doubt that [contract language] is enforceable in most states (it is not libelous if it is true). Clear denial of Jen Palmer's due process IMO. If that language were in a contract it would be deemed unenforceable. What do you lawyers think?Agree with you. Don't play a lawyer on TV either but our bass club checked into a related issue as to a hosted event & signed liability waivers vs. just carrying insurance. BLUF is that, in many cases contrary to belief, the little "hold harmless" thingy you have someone sign doesn't write away your liability. Their little kid fall down/go boom the hosting entity is still on the hook - the current litigious societal rule I call "you want me to pay you because I can't fix your stupidity." The company's premise is bs.

It was good that Richard posted this for awareness of such language. Frankly, if her money was refunded w/cancelled transaction, I think she just should've taken her money & moved on. Took awhile but PayPal did what it does. I think the company is on quicksand but having the author of the review deal with the credit rating people is torture that can exceed some bogus $3.5K, which they're not in a legal position to impose. I smell Nigerian money orders.

MtnGoat
11-17-2013, 09:34
Thanks Richard for posting, with on lines getting ready to start up with Christmas.

We'll if you sign something, it's a contract. Online or paper. This tells us ALL to read those online agreements and terms.


If this.was on their web site, why is this company not fined for posting a BBB Rating with nothing filed at the BBB? Crazy and this Company is a joke.

As of November 28, 2012, the BBB became aware that the company's website is displaying a BBB Accredited Business logo and BBB Rating A+; however, the comapny is not a BBB accredited business and the BBB rating is not A+. - See more at: http://www.bbb.org/western-michigan/....w85vkPeA.dpuf

As of November 28, 2012, the BBB became aware that the company's website is displaying a BBB Accredited Business logo and BBB Rating A+; however, the comapny is not a BBB accredited business and the BBB rating is not A+.

Ape Man
11-17-2013, 21:18
We'll if you sign something, it's a contract. Online or paper. This tells us ALL to read those online agreements and terms.



I should probably keep silent and let the lawyers speak, but it was drummed into my head during business law that a contract was not enforceable if nothing of value had changed hands.

Going by the above story, I don't see how the contract could be enforceable.

Did they lie to me in Business law?