Tuesday, November 19, 2013

Beware, Negative reviews can Haunt You, Read the fine print!

Title: Beware, Negative reviews can Haunt You, Read the fine print!

Can defending against a negative review Backfire?    
How are you handling your Reputation?
A negative review turns bad for the customer.  Hopefully your business has a safer way for reputation protection that does not force you into hiding.  Or beat up your customers.

Company fines couple $3.5k for posting negative review

By Jasmine Bailey

A bizarre story out of Texas, where a couple was charged $3,500 and had their credit scores ruined by an online retail company, all because of a bad review.
"Way back in 2008, Jen Palmer's husband ordered her a number of trinkets from the website KlearGear.com. … For 30 days KlearGear.com never sent the products, so the transaction was automatically cancelled by PayPal."  (Via KUTV)
She tried calling the company but never got through, so she took to the website Ripoff Report to vent her frustrations, saying the company had "incompetent customer service" and "there is absolutely no way to get in touch with a physical human being."
Three years later, her husband received an email from KlearGear claiming he owed the company thousands of dollars as a result of the complaint on Ripoff Report. Apparently KlearGear's terms of service contained a clause restricting customers' ability to post negative reviews.
It's now been taken down, but it 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." The company then threatened the couple with the $3,500 fee if they didn't retract their review.
So the Palmers contacted Ripoff Report to have the complaint removed but were told the site wouldn't take it down unless, get this, the couple paid a separate $2,000 fine. (Via Business Insider)
The Palmers passed on that. And now, thanks to the outstanding debt to KlearGear, the couple says their credit scores are so bad they can't get a loan for a new car or to fix their home's furnace. Oh, and they can't afford an attorney to clean up the mess. (Via Daily Mail)
At the time of the incident back in 2010, KlearGear had an “F” rating from the Better Business Bureau. Although it now has a “B,” Ripoff Report still has KlearGear complaints posted. No word on if there are any cases similar to the one involving the Palmers.
The couple is now working with a separate credit company to try to have the fine expunged. 
Source: AJC.com
Original Source: KUTV

Additional Source: TechDirt
Online Retailer Says If You Give It A Negative Review It Can Fine You $3,500
from the yeah,-that-sort-of-thing-would-NEVER-backfire dept
Lots of quasi-legal action has been taken over negative reviews left by customers at sites like Ripoff Report and Yelp. Usually, it takes the form of post-review threats about defamation and libel. Every so often, though, a company will make proactive moves (usually bad ones) to head off negative reviews.

Kleargear's, "Terms of Sale and Use".

Non-Disparagement Clause
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.

Should you violate this clause, as determined by KlearGear.com in its sole discretion, you will be provided a seventy-two (72) hour opportunity to retract the content in question. If the content remains, in whole or in part, you will immediately be billed $3,500.00 USD for legal fees and court costs until such complete costs are determined in litigation. Should these charges remain unpaid for 30 calendar days from the billing date, your unpaid invoice will be forwarded to our third party collection firm and will be reported to consumer credit reporting agencies until paid.

Gone into Social Hiding!
KlearGear has protected its Tweets and canceled its Facebook page.
In addition, even though KlearGear has a "TRUSTe Certified Privacy" emblem on its home page, TRUSTe tweeted this morning that "@KlearGear is NOT @TRUSTe certified."

Social Hiding Source: boing boing

Real Traffic Productions recommends proper SEO to help bury negative reviews on third party reviews sites or reverse Automotive SEO.  Then listen to your customers with our Reputation Management Services.  offering alerts for review, social mentions, image mentions and more with executive reporting.

                                                        

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