Some Lawmakers Don't Want Businesses Retaliating For Negative Online Reviews

DENVER (CBS4) - Lawmakers are working to free consumers to post negative reviews about businesses online without fear of retaliation.

A congressional hearing Wednesday heard from a plaintiff who posted a negative review about a company called KlearGear and then was fined $3,500.

In Utah, the unpaid fine ruined Jen Palmer's credit rating and she had to go to court to fix it.

"We aren't the only victims of this type of conduct," Palmer told CBS News.

KlearGear was able to ask for the fee because of its terms of service. Non-disparagement or gag clauses are appearing more and more in non-negotiable form contracts, or terms of service.

Some businesses, from certain hotels and at least one diet manufacturer, have sought to use those clauses unfairly to penalize or pursue fines from customers for negative reviews.

The U.S. Senate Committee on Commerce, Science, and Transportation discussed new legislation that would outlaw that practice.

"It can build you up, (or) it could destroy you as a business," Denver business owner Semion Kikirov said.

Kikirov owns Semion's Barbershop near the Capitol Hill neighborhood and believes managing an online reputation is a full-time job.

"Every morning I wake up the first thing I look at is Yelp, Google Reviews," Kikirov said.

He believes that when it's done right it can help build a loyal customer base. After four years the private barbershop has a near perfect yelp rating.

"I don't want any money if you're not happy with your service," Kikirov said.

Mark Taylor is a weekend morning anchor and reporter with CBS4 news covering a wide variety of stories. Follow him on Twitter @MarkTaylor_TV.