The Nebraska Attorney General’s Office announced last Thursday it settled with an Omaha builder in a case alleging violations of the U.S. Consumer Review Fairness Act and Nebraska Consumer Protection Act.

Celebrity Homes Inc. used non-disparagement provisions in their contracts to sell and construct custom homes for consumers, according to a news release from Nebraska Attorney General Doug Peterson. CRFA is a federal statute prohibiting businesses from using form contract provisions to prevent consumers from posting negative reviews online, Peterson said in the release.

“In today’s information age, it is increasingly common for consumers to rely on customer reviews and ratings to compare merchants, which makes it critically important that all consumers be allowed to share their honest opinions This company used non-disparagement clauses in its form contracts to discourage their customers from posting honest but negative feedback online,” he said. “These contract provisions are illegal, and companies that use them will be held accountable.”

Under the terms of the settlement, Celebrity Homes is prohibited from using such contract terms and must notify customers whose contracts contained these illegal clauses that the provisions are void and cannot be enforced. Those customers can publish honest reviews on any social media or internet platform, according to the release. The company also agreed to pay $15,000 to the Attorney General’s Office.

For more information on consumer protection and complaints, go to protectthegoodlife.nebraska.gov.