Consumer non-disparagement clauses gone wild: the sequel

As we’ve reported earlier in a series of posts, an online supplier named KlearGear inserted into its customer agreement a clause prohibiting “any action that negatively impacts KlearGear.com [or] its reputation.” When a couple nonetheless left a negative review, it billed them $3,500 and reported them for nonpayment to credit raters. The couple filed an action to which KlearGear failed to respond, and a court in Salt Lake City has now granted their request for a total of $306,750 including $250,500 in punitive damages, though the collectibility of that sum is unknown. [CL&P]

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