PENNSYLVANIA — Attorney General Michelle A. Henry this week announced a settlement agreement with central Pennsylvania-based Inch & Company Property Management, LLC. The settlement addresses alleged violations of the Federal Consumer Review Fairness Act and Pennsylvania Unfair Trade Practices and Consumer Protection Law.
The agreement centers around lease terms that allegedly unlawfully prohibited tenants of Inch & Company properties from posting online reviews about the property and management. According to the terms of the leases, tenants were subjected to financial penalties for posting negative online reviews.
Under the terms of the settlement, Inch & Company is now prohibited from using such non-disparagement clauses in future leases. The company must also immediately notify all tenants that any current non-disparagement clauses included in a tenant’s lease are no longer applicable.
“Online reviews are essential to consumers exploring their options for living spaces, and this clause prevented tenants from speaking the truth about their experiences,” said Attorney General Henry. “I encourage consumers to do their homework before signing any contract, and part of that research should include exploring any reviews that are available and may influence decision-making.”
The Consumer Review Fairness Act prohibits businesses from utilizing a contract that imposes a penalty on an individual for posting reviews or commenting about the business. This restriction extends to landlords prohibiting tenants from posting reviews online about the landlord’s property and/or management practices.
The Assurance of Voluntary Compliance was filed in the York County Court of Common Pleas by Senior Deputy Attorney General Paul D. Edger.
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