263:, representing the Palmers, sent an open letter demanding that Kleargear pay the Palmers $ 75,000, remove the taint on their credit rating, and cease and desist from using the non-disparagement clause in the future. Kleargear ignored a December 16, 2013, deadline to respond to the offer, and Public Citizen sued the company in federal court for
278:
in favor of the
Palmers. Kleargear stated to the press that the default judgment was not valid because notice should have been served to its parent company in France. Judge Benson awarded the Palmers $ 306,750 in compensatory and punitive damages on June 25, 2014. On July 24, the Palmers filed a
206:
for $ 3,500 based on an anti-disparagement clause of their site's terms and conditions unless they agreed to take down the review. Ripoff Report has a policy of not removing reviews; statements of fact could only be removed if a $ 2,000 arbitration fee was paid and the arbitrator determined that
289:
Responding to the
Palmers' experience with KlearGear, California enacted a law in 2014 banning the use of non-disparagement clauses in consumer contracts. Similar bans were introduced in both houses of Congress in 2015, and Jen Palmer testified live before the U.S. Senate Committee on Commerce,
197:
The plaintiffs, John and Jen Palmer, attempted to purchase a desk ornament and keychain from the company at a price under $ 20. Kleargear.com never delivered. PayPal automatically canceled the order in
December 2008. Soon after, Jen left a negative review at
73:
188:
The case led to a
California statute prohibiting the enforcement of such clauses, and the introduction of the Consumer Review Freedom Act of 2015, a proposed bill that, since passed, has enacted similar prohibitions at the federal level.
166:, filed December 18, 2013), is a 2013 US federal lawsuit in which an internet retailer was sued by two of its customers after it billed the customers for $ 3,500 following a negative review. The retailer, Kleargear.com, specializes in
333:
Inspired by the
Palmers' experience with KlearGear, the California legislature passed a bill in 2014 to ban the use of non-disparagement clauses in consumer contracts, and Governor Jerry Brown signed it into law on September 9, 2014.
290:
Science, and
Transportation in November 2015. Public Citizen submitted written testimony to the committee as well. With Public Citizen's support, the Consumer Review Freedom Act passed the Senate in December 2015.
218:
One issue in the dispute was whether the disparagement clause had been present when the plaintiffs had made their order in 2008. In 2013, after examining archives of
Kleargear's Terms of Service at the
182:. In March 2014, the district court entered a default judgment for the plaintiffs, and in June 2014 awarded damages of $ 306,750. As of 2015, the Palmers continue to attempt to collect the judgment.
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violations, defamation, and other torts. According to attorney Scott
Michelman, numerous attempts to get in touch with Kleargear before the suit were unsuccessful. In March 2014,
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stated that the clause had not been present and had been added to the site in June 2012. In 2014, Kleargear stated that the clause had been present in 2008.
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472:
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On
February 15, 2015, Judge Benson approved assignment of the judgment to the Law Offices of Ronald P. Slates, a Los Angeles law firm specializing in
121:
Default judgment; $ 306,750 in compensatory and punitive damages; reporting customer to debt collection for publishing a negative review violates the
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toys, gadgets and office toys; it is owned by Paris-based
Descoteaux Boutiques. The plaintiffs charged the company with violating the
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motion for $ 47,596.86 in attorneys' fees and expenses. On August 28, the court awarded fees and expenses in the amount requested.
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377:
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against accounts held by Kleargear with those companies. As of October 2015, the case is assigned to U.S. District Court Judge
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The internet retailer's charge to the consumer was based on an anti-disparagement clause of their site's terms and conditions.
812:
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38:
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scheduled hearings on the bill for November 4, 2015. Among those scheduled to testify were Jen Palmer, a plaintiff in
341:) was introduced in the U.S. Congress, to make such clauses void and unenforceable at the federal level. U.S. Senator
873:
477:
306:
896:"Public Citizen Sues Online Retailer That Damaged Utah Customer's Credit in Retaliation for Critical Online Review"
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those statements were false. When Palmer and her husband John refused to pay, Kleargear reported the fine for
840:"Public Citizen Suing On Behalf Of Customers Whose Credit Was Ruined By KlearGear's $ 3,500 'Bad Review' Fee"
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have issued statements that Kleargear used their logos without permission and have begun investigations.
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Following an internet backlash, Kleargear closed its Facebook page and protected its Twitter account.
1115:
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1136:"Sen. Moran Introduces Legislation to Protect Consumers from Fines for Negative Online Reviews"
924:
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726:"KlearGear Goes Into Social Media Lockdown After It Charges Customers For Posting Bad Reviews"
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665:"The Yelper and the Negative Review: the Developing Battle Over Nondisparagement Clauses"
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813:"Utah Couple Fined $ 3,500 by Online Merchant KlearGear Retains Lawyer, Turns Tables"
758:
391:), unanimously passed in the Senate. On December 15, 2016, it was signed into law by
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473:"Retailer That Fined Couple $ 3,500 for Negative Review Hit With Lawsuit - US News"
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787:"Follow Up: Action on Behalf of Woman Fined for Penning Negative Online Review"
637:"Online Retailer Says If You Give It A Negative Review It Can Fine You $ 3,500"
94:
John Palmer and Jennifer Kulas v. Kleargear.com and Fidelity Information Corp.
730:
585:
383:
In November 2016, the amended Consumer Review Freedom Act of 2015, titled the
271:
137:
65:
John Palmer and Jennifer Kulas v. Kleargear.com and Fidelity Information Corp.
1184:"It will soon be illegal to punish customers who criticize businesses online"
970:"Retailer that charged $ 3,500 for bad review to fight Utah couple's lawsuit"
314:
609:"Company Tries to Fine Customer $ 3,500 for Leaving Negative Review Online"
72:
1001:
869:"Retailer That Fined Couple $ 3,500 for Negative Review Hit With Lawsuit"
844:
641:
613:
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17:
947:
698:"Embattled retailer KlearGear fights back against online review defeat"
249:
925:"Defiance May Soon Pay Off for Couple Fined Over Negative Comments"
558:
416:"KlearGear must pay $ 306,750 to couple that left negative review"
1210:"President Obama signs the Consumer Review Fairness Act into law"
1026:
no. 13-00175, D. Utah, Motion For Attorneys' Fees (July 24, 2014)
301:
of Kleargear assets, including levies with credit card companies
293:
In April 2015, the Palmers and the Slates firm filed suit in the
1161:"How 'Gagging' Honest Reviews Affects Consumers and the Economy"
928:
790:
504:"Layton couple sue KlearGear for $ 3,500 negative-review charge"
224:
171:
167:
354:
U.S. Senate Committee on Commerce, Science, and Transportation
337:
In September 2015, the Consumer Review Freedom Act of 2015 (
1050:
no. 13-00175, D. Utah, Docket entry 25 (February 15, 2015)
295:
U.S. District Court for the Central District of California
1038:
no. 13-00175, D. Utah, Docket entry 22 (August 28, 2014)
202:. In May 2012, the company sent a bill to Jen Palmer of
1089:"California protects the right to Yelp without penalty"
42:
1155:
1153:
84:
United States District Court for the District of Utah
1298:
California law prohibiting non-disparagement clauses
754:"A Company Is Sued Over Its 'No Bad Reviews' Clause"
143:
133:
128:
115:
107:
99:
89:
79:
63:
256:also began an investigation on the credit report.
366:Information Technology and Innovation Foundation
531:"BBC News - A case for reading the small print"
376:; and Ira Rheingold, executive director of the
1077:no. 15-03656, C.D. Cal. (filed April 30, 2015)
1070:
1068:
559:"Exploitation by Wrap Contracts – Click 'Agree
111:no. 13-cv-00175 (D. Utah, filed Dec. 18, 2013)
944:"Utah couple wins suit against KlearGear.com"
240:called the public backlash an example of the
8:
447:"Fined For Posting a Negative Review Online"
180:intentional infliction of emotional distress
26:
440:
438:
378:National Association of Consumer Advocates
71:
60:
579:Frauenfelder, Mark (November 15, 2013).
32:This is an accepted version of this page
1208:Tarantola, Andrew (December 15, 2016).
691:
689:
607:McNally, Victoria (November 19, 2013).
497:
495:
403:
364:; Daniel Castro, vice-president of the
28:
752:Brustein, Joshua (December 18, 2013).
1087:Chokshi, Niraj (September 10, 2014).
567:California Bar IP Journal, New Matter
409:
407:
7:
1048:Palmer & Kulas v. Kleargear.com,
1036:Palmer & Kulas v. Kleargear.com,
1024:Palmer & Kulas v. Kleargear.com,
997:"Bad review couple win compensation"
867:Nelson, Steven (December 18, 2013).
785:Gephardt, Matt (November 21, 2013).
502:Piper, Matthew (December 18, 2013).
471:Nelson, Steven (December 18, 2013).
374:Santa Clara University School of Law
942:Van Geer, Rachel (March 17, 2014).
1277:Amended Kleargear Public Statement
1182:Brodkin, Jon (November 29, 2016).
811:Kim, Susanna (November 26, 2013).
635:Cushing, Tim (November 14, 2013).
269:United States District Court judge
57:
1138:. U.S. Senate. September 18, 2015
923:Gephardt, Matt (March 21, 2014).
724:Biggs, John (November 18, 2013).
360:; Adam Medros, vice-president of
1075:Palmer, et al. v. Kleargear.com,
414:Farivar, Cyrus (June 25, 2014).
349:case as one basis for the bill.
1318:United States contract case law
1313:United States Internet case law
1163:. U.S. Senate. October 30, 2015
968:Manson, Pamela (May 20, 2014).
696:Farivar, Cyrus (May 20, 2014).
307:American Express Centurion Bank
1323:2013 in United States case law
557:Kim, Nancy S. (June 2, 2014).
1:
874:U.S. News & World Report
569:, Vol. 39, no. 2, pp. 10–17.
478:U.S. News & World Report
385:Consumer Review Fairness Act
286:, and closed the Utah case.
1240:, no. 13-cv-00175 (D. Utah)
663:Davis, Noah C. (May 2014).
297:to enforce the judgment by
211:, which dragged down their
1344:
1271:KlearGear Public Statement
674:. American Bar Association
1120:Vol. 161, Page
536:BBC News Magazine Monitor
372:, a law professor at the
265:Fair Credit Reporting Act
176:Fair Credit Reporting Act
150:Fair Credit Reporting Act
148:
123:Fair Credit Reporting Act
120:
70:
1265:Kleargear.com statements
311:MasterCard International
39:latest accepted revision
581:"Kleargear bills woman"
159:Palmer v. Kleargear.com
1258:order awarding damages
259:On November 25, 2013,
246:Better Business Bureau
1260:, issued July 1, 2014
1248:, filed Dec. 18, 2013
509:The Salt Lake Tribune
1254:, issued May 5, 2014
1124:(September 16, 2015)
1116:Congressional Record
766:on December 18, 2013
329:Further implications
1291:Palmer v. Kleargear
1238:Palmer v. Kleargear
1093:The Washington Post
904:. December 18, 2013
848:. November 26, 2013
539:. November 18, 2013
358:Palmer v. KlearGear
284:judgment collection
162:, no. 13-cv-00175 (
29:Page version status
35:
1294:at Public Citizen
1236:Legal documents,
975:Salt Lake Tribune
178:, defamation and
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16:(Redirected from
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1219:December 16,
1217:. Retrieved
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1193:November 29,
1191:. Retrieved
1188:Ars Technica
1187:
1177:
1165:. Retrieved
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908:December 25,
906:. Retrieved
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880:December 21,
878:. Retrieved
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852:November 27,
850:. Retrieved
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824:November 28,
822:. Retrieved
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796:November 27,
794:. Retrieved
780:
770:December 25,
768:. Retrieved
764:the original
757:
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737:November 26,
735:. Retrieved
729:
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707:. Retrieved
703:Ars Technica
701:
676:. Retrieved
671:
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648:November 26,
646:. Retrieved
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620:November 26,
618:. Retrieved
612:
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592:November 27,
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543:November 26,
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450:
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421:Ars Technica
419:
393:Barack Obama
382:
370:Eric Goldman
357:
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339:S. 2044
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37:This is the
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1167:October 30,
1142:October 30,
362:TripAdvisor
343:Jerry Moran
299:garnishment
244:. Both the
47:3 July 2024
1307:Categories
1113:2015
731:TechCrunch
586:BoingBoing
399:References
345:cited the
274:entered a
272:Dee Benson
209:collection
138:Dee Benson
1246:complaint
387:of 2016 (
347:Kleargear
315:Visa Inc.
170:apparel,
108:Citations
18:Kleargear
1214:Engadget
1009:June 29,
1002:BBC News
981:July 10,
953:June 30,
845:Techdirt
818:ABC News
709:June 30,
678:July 13,
642:Techdirt
614:Mashable
515:June 30,
484:July 13,
456:July 13,
427:June 29,
254:Experian
230:Techdirt
144:Keywords
43:reviewed
948:WOOD-TV
193:History
164:D. Utah
116:Holding
100:Decided
672:GPSolo
313:, and
250:TRUSTe
1284:Other
1122:S6699
668:(PDF)
80:Court
1221:2016
1195:2016
1169:2015
1144:2015
1100:2014
1011:2014
983:2014
955:2014
929:KUTV
910:2013
882:2013
854:2013
826:2013
798:2013
791:KUTV
772:2013
739:2013
711:2014
680:2014
650:2013
622:2013
594:2013
545:2013
517:2014
486:2014
458:2014
451:KUTV
429:2014
352:The
248:and
227:and
225:KUTV
172:geek
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