Oregon Attorney General Dan Rayfield has filed a lawsuit against a residential contractor over a clause in its contract that prevents customers from posting negative reviews online.
The suit, filed in Oregon’s U.S. District Court, claims SFW Construction “has promoted positive online reviews while unlawfully suppressing reviews by consumers who raise issues with the contractor’s performance or bills.”
It alleges the company has placed the dispute resolution clause in its contracts since 2022. That clause states that customers who wish to settle disputes with the company must not post negative reviews online, which Rayfield’s office claims this is in violation of the federal Consumer Review Fairness Act.
It then touts its high online review scores in advertisements, which the lawsuit also alleges is a violation of the Oregon’s Unlawful Trade Practices Act.
SFW operates siding and dry rot repair companies across Oregon and Washington, including in Eugene, Bend and Lincoln County. The company often operates under names that include a city name and phrases like “siding repair” or “dry rot repair.”
“It is certainly not a problem for a business when it has a customer complaint to try and work it out with the customer and try and make it right,” Deputy Attorney General Ben Gutman told KLCC. "What’s unfair to consumers and other competitors that are doing this the right way is when you just tell your customers at the outset, ‘You may not leave a bad review for us online, period.’"
SFW did not return KLCC’s requests for an interview or comment.
Gutman said customers who have experienced similar issues with SFW or other companies can contact the Oregon Department of Justice at its website or (877) 877-9392.
