Oregon AG: SFW Construction Gag Clause Lawsuit Challenges Review Suppression

• Oregon Attorney General Dan Rayfield has filed a federal lawsuit against SFW Construction for allegedly suppressing negative online reviews.
• The contractor is accused of using "gag clauses" in customer contracts since 2022 to restrict the right to post critical feedback.
• The lawsuit claims SFW violated the federal Consumer Review Fairness Act and Oregon’s Unlawful Trade Practices Act.
• SFW Construction reportedly showcased only positive reviews on its website while not informing potential customers about contractual restrictions.
• The Attorney General seeks to stop the use of these contracts, impose civil penalties, and secure other monetary relief.

The ability of consumers to share their experiences, both positive and negative, is fundamental to an informed marketplace.

Oregon Attorney General Dan Rayfield has initiated a significant legal challenge against SFW Construction, a regional residential contractor. The lawsuit, filed on October 20, 2026, in federal court, centers on allegations that the company actively suppressed negative customer feedback by embedding restrictive "gag clauses" within its standard contracts. This action, according to the complaint, effectively prevented dissatisfied clients from sharing honest online reviews, while SFW's public-facing platforms prominently displayed only positive testimonials.

The legal filing asserts that SFW Construction has, since 2022, consistently utilized a form contract for its Oregon customers that explicitly curtailed their ability to post critical reviews. Crucially, potential clients were reportedly not informed of these contractual limitations. Attorney General Rayfield emphasized the importance of authentic customer feedback, stating that reviews hold value only when individuals are free to express their true experiences, whether favorable or unfavorable. He characterized SFW's alleged conduct as "rigging the system" by concealing these clauses in fine print and selectively showcasing five-star ratings, which he deemed unfair to both Oregon homeowners and reputable contractors.

The lawsuit specifically charges SFW Construction with violating two key pieces of legislation designed to protect consumers' rights to free expression: the federal Consumer Review Fairness Act (CRFA) and Oregon’s Unlawful Trade Practices Act. The CRFA, a federal statute, explicitly prohibits businesses from incorporating provisions into their form contracts that prevent or penalize customers for publishing honest reviews about their goods, services, or conduct. This federal protection underscores the illegality of contractual gag clauses that stifle legitimate consumer feedback.

Complementing the federal law, Oregon’s Unlawful Trade Practices Act provides state-level protections against deceptive and unfair business practices. The Attorney General's complaint argues that SFW's alleged actions, including the use of contractual gag clauses and the selective presentation of reviews, constitute such unlawful trade practices. The combination of these federal and state statutes forms the legal basis for the state's challenge against the contractor's alleged customer review suppression lawsuit tactics.

This legal action by Attorney General Dan Rayfield against SFW Construction highlights the critical importance of transparency in consumer-facing businesses and the legality of contractual gag clauses. The ability of consumers to share their experiences, both positive and negative, is fundamental to an informed marketplace. The lawsuit aims to ensure that businesses, particularly those operating in Oregon, adhere to established consumer protection laws, preventing them from manipulating public perception through the suppression of honest feedback.

In seeking redress, Attorney General Rayfield is petitioning the court for several remedies. Primarily, he requests an injunction to prohibit SFW Construction from continuing to use these allegedly unlawful contracts. Furthermore, the lawsuit seeks to impose civil penalties on the company and secure other monetary relief, underscoring the financial consequences for businesses found to be in violation of these consumer protection statutes. Oregonians who suspect a business has used a form contract to prevent them from posting an honest review are encouraged to file a complaint with the Oregon Department of Justice via oregonconsumer.gov or by calling 1-877-877-9392.

Lawyers advising businesses, particularly those with consumer-facing contracts, should review standard terms to ensure they do not contain clauses restricting customers' rights to post honest online reviews, as such provisions violate the federal Consumer Review Fairness Act and state-level unlawful trade practices acts, exposing companies to significant penalties and litigation.

Source: Reporting on the Oregon Attorney General's action.