Oregon Sues Builder Over Negative Review Gag Clauses
The state attorney general alleges SFW Construction used illegal contract clauses to block negative customer reviews.
Updated on Oct. 20, 2026 in Construction
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Oregon Attorney General Dan Rayfield has filed a lawsuit against SFW Construction, accusing the company of using contract gag clauses to prevent customers from posting negative reviews. The legal action alleges that the company's standard contracts have suppressed honest feedback since 2022.
Why it matters
The lawsuit aims to protect consumer rights by challenging contract provisions that reportedly shield the company from public criticism. The state seeks to halt the use of these clauses and secure monetary penalties for alleged violations of trade laws.
The lawsuit filed by the Oregon Attorney General targets standard contracts used by SFW Construction since 2022. Consumers can report related experiences to the Oregon Department of Justice at 1-877-877-9392.
The players
Dan Rayfield
Dan Rayfield serves as the Attorney General of Oregon and is the chief law enforcement officer for the state.
SFW Construction
SFW Construction is a building firm headquartered in Portland with additional branch operations located in Eugene.
The details
The lawsuit, filed in federal court, claims SFW Construction utilized hidden clauses to restrict negative feedback while simultaneously featuring customer reviews on its company website. Officials allege these practices violate both the federal Consumer Review Fairness Act and Oregon’s Unlawful Trade Practices Act.
Timeline
The company began using the standard contract with gag clauses in 2022.
The lawsuit was filed in federal court on October 20, 2026.
Market Landscape
This litigation highlights the ongoing enforcement of the Consumer Review Fairness Act by state authorities against firms attempting to control their online reputation. It signals a move by regulators to curb contract terms that create unfair competitive advantages in the digital marketplace.
Customers who have signed contracts with the builder may no longer be legally bound by clauses prohibiting them from sharing honest feedback if the state prevails. Residents can contact the Oregon Department of Justice to report potential violations related to their own service experiences.
The takeaway
Consumers should review all service contracts for restrictive language regarding online feedback before signing. Protecting the right to share honest experiences remains a priority for state consumer protection agencies.
Further reading
Learn more about local industry standards on the Oregon Construction section page.
More information
To report a dispute, visit the Oregon Department of Justice consumer complaint portal.
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Should businesses be allowed to include contract clauses that prevent customers from posting negative online reviews?
