KlearGear, you may recall, is a company that attempts to enforce a thoroughly despicable non-disparagement clause against customers (including, perhaps, customers who bought things from KlearGear before they put the policy on their web site), and that advertises the support of entities that don't actually support it. The internet reacted angrily, shredding whatever scraps of good reputation KlearGear previously enjoyed.
But KlearGear's bad news is just beginning.
Public Citizen, through Scott Michelman and Paul Alan Levy, have stepped in to represent John and Jen Palmer, the couple whose credit rating KlearGear trashed through its bogus assertion that the Palmers owed KlearGear money for criticizing them. The Palmers are demanding that KlearGear (1) report to the credit agencies that its assertion of debt was in error, (2) agree not to use non-disparagement clauses any more, and (3) pay them $75,000 to compensate them for the problems they've faced because of wrongfully trashed credit (for instance, inability to get a car loan, problems buying a new house, and so on).
Public Citizen is prepared to sue KlearGear on the Palmers' behalf under the Federal Credit Reporting Act and other statutes. Public Citizen will make a formidable opponent. KlearGear will make a terrible client for whatever poor bastard has to represent them.
Read about Public Citizen's representation of the Palmers, and read their demand letter to KlearGear's counsel, here:
As our letter explains, KlearGear's actions violate state tort law and the federal Fair Credit Reporting Act. If KlearGear refuses to comply, we'll file suit to enforce the Palmers' rights and send a message to unscrupulous corporations that they cannot muzzle their customers, extort money from them when they post critical reviews, or ruin their credit when they refuse outragous demands for payment.
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