James HaversJuly 5, 2025 at 6:50 AMAdrian Paull who submitted a negative review of the propertyWhen Adrian Paull and his wife moved into a Scottsdale, Arizona condo last year, they expected a short-term rental to serve as a comfortable landing pad while they searched for their next home. Instead, they say they found black mold and unfinished repairs. After posting honest online reviews, they were also served a surprise bill for $4,000.The reviews, it turns out, had violated a clause buried deep 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 told Phoenix’s 12News. “So 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.Here’s what happened and what you should do if a landlord or business tries to fine you for a negative review.Don’t missA nightmare rental experience turns into a financial fightPaull 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 a comfortable cushion of time before their official move-out date.But things went south fast.“When we lifted a piece of furniture in the master bedroom, there was an enormous patch of black mold,” Paull said. 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.” Violating this clause, it warned, would trigger a $2,000 fine per occurrence.Why that clause is likely illegalThe 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.The Federal Trade Commission (FTC) has brought enforcement actions against businesses that try to use “gag clauses” in contracts. Violators may face civil penalties and court orders. If you’re a renter or customer, that means: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).You should save any documentation — contracts, emails or invoices — if you plan to dispute the charge.As of publication, Paull has filed complaints with the Arizona Attorney General’s Office, BBB, and says he plans to contact the FTC.Read more: You don’t have to be a millionaire to gain access to this $1B private real estate f …
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