Attorney General Dan Rayfield is taking legal action against SFW Construction, a regional residential contractor, for keeping unhappy customers from posting honest reviews online. The case, filed today in federal court, says the company hid a gag clause in its customer contracts while showcasing only positive reviews.
“Before you let someone work on your home, you read the reviews,” said Attorney General Rayfield. “But reviews only mean something if customers are free to tell the truth, good or bad. Our lawsuit says SFW Construction rigged the system by burying a gag clause in the fine print and then showing off only the five-star reviews. That’s not fair to Oregon homeowners, and it’s not fair to the honest contractors who earn their reputations the right way.”
According to the complaint, SFW has used a standard contract with Oregon customers since 2022 that restricts their right to post negative reviews. Potential customers weren’t told about the restriction. Meanwhile, the company’s website features glowing customer reviews.
The lawsuit says SFW violated the federal Consumer Review Fairness Act and Oregon’s Unlawful Trade Practices Act. The Consumer Review Fairness Act makes it illegal for businesses to use form contracts that stop customers from sharing honest reviews.
Attorney General Rayfield is asking the court to stop SFW from using these contracts and to order the company to pay civil penalties and other monetary relief.
Oregonians who think a business has used a form contract to prevent them from posting an honest review can file a complaint with the Oregon Department of Justice at oregonconsumer.gov or by calling 1-877-877-9392.
