PHOENIX — Did you have a bad experience with a business and want to share it online?
Before you do, take a close look at any contract you may have signed.
You could face costs if you speak out.
When Lisa Vallejos moved out of her Valley rental house, she says she had an issue with property manager Service Star Realty.
"It forced me to go through my lease point by point and read through things very carefully and that's when it came back up, a non-disparagement clause," Vallejos says.
It's something she says she saw when she signed in late 2020 but didn't think about it until move out.
It's the last item on her lease and says in part, tenants are "prohibited from making or publishing disparaging remarks or statements" about the owner or management.
Vallejos thought that included her if she wanted to talk negatively about her experience.
"They could try to come after me with this $300 charge per day," she says.
The lease says it's $300 "for each remark/statement/representation that is disparaging and is not removed within 72 hours" of the request to remove.
"I'm sure people by in large are intimidated," Vallejos says.
But she did some digging and found that the non-disparagement clause in her lease, or in most other business contracts, is not legal.
The Consumer Review Fairness Act of 2016 says it's illegal for companies to include contract provisions that "impose a penalty or fee" for someone giving an honest review.
It can be an online review, social media post, uploaded photo or video.
Employment and freelance agreements are exceptions.
Other exceptions include posts that are libelous, harassing, vulgar or clearly false.
"If people don't know the law then they don't know it's illegal and don't know you can actually do something to push back," Vallejos says.
We asked Service Star Realty for an explanation.
They say they no longer include non-disparagement clauses in their leases but did not say when that ended.
In a statement, the company says:
"Service Star Realty has not enforced any penalty provisions for this clause. Our lease is ever-evolving and that clause has been deleted at various times due to the fact we sign on an average of 22 new clients and write roughly 35 leases per month, and our residents typically renew for 3 lease terms...
...We'd like to also add that we have a wonderful Google rating of 4.5 stars with 719 Google Reviews. We strive to have the best customer service possible and our reviews reflect how hard our team works to accomplish that."
A spokesperson for the Arizona Multihousing Association, which represents property managers, says Service Star Realty is not a member and non-disparagement clauses are not included in their standard lease agreements.
Are you a renter?
Do you have a similar clause in your lease?
Take a look and email me if you do: joe@abc15.com.
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