W
hen Adrian Paull and his wife moved into a Scottsdale, Arizona condo last year, they expected it to be a temporary home while they searched for their next place. Instead, they found black mold and unfinished repairs. After posting honest online reviews, they were hit with a surprise bill for $4,000.
The reviews had violated a clause in the couple's 21-page lease that fined tenants $2,000 per "negative" post, including online reviews rated less than three stars. Paull is now sounding the alarm about an issue many renters might not know is illegal: Companies penalizing customers for honest feedback.
Reviews are how we hold companies accountable, Paull said. Corrupting the review process is absolutely unlawful. And he's right - the Consumer Review Fairness Act (CRFA), passed in 2016, protects U.S. consumers from precisely this kind of retaliation.
Paull and his wife sold their home in North Scottsdale in 2023 and signed a lease at a nearby condo managed by Denali Real Estate. They moved quickly, hoping to give themselves time before their official move-out date. But things went south fast - when they lifted a piece of furniture in the master bedroom, there was an enormous patch of black mold.
The couple left immediately and asked Denali to fix the issue. When they returned, Paull claims the problems weren't resolved: walls still had holes, sections of carpet were missing, and sharp carpet tacks were exposed on the floor. Fed up with what he described as unresponsiveness from the company, Paull turned to Google and Yelp to share his experience.
Instead of a response, he says his $2,200 rental credit suddenly flipped to a $1,800 balance due. The reason? 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.
The CRFA makes it illegal for companies to enforce contract clauses that punish consumers for honest reviews, whether online or offline. That means if you post a truthful review, a company cannot legally fine, threaten, or retaliate against you for it, even if it's negative.
If you're a renter or customer, here are your rights: You cannot be fined or penalized for a review just because it's negative. You can file complaints with the FTC, your state's attorney general, and the Better Business Bureau (BBB). Save any documentation - contracts, emails, or invoices - if you plan to dispute the charge.
Paull has filed complaints with the Arizona Attorney General's Office, BBB, and plans to contact the FTC. Denali Real Estate backed down after 12News reached out for comment, saying it would remove the non-disparagement clause from its contracts "immediately." However, it remains unclear whether they will drop the charges against Paull.
If a company tries to silence your review, here are the steps you can take: Know your rights - the CRFA makes it illegal for businesses to enforce "gag clauses" in consumer contracts. File complaints with the right agencies: start with your state's attorney general and contact the FTC and BBB. Save all documentation and don't be afraid to speak up - reviews are protected speech.
