GRANDVILLE, MI — A Utah couple is suing an online retailer with a Grandville address after a story about their $3,500 fine for posting a negative customer service review went viral online.

John Palmer, and wife, Jennifer, of Layton, Utah, filed suit Wednesday, Dec. 18, in U.S. District Court in Utah against KlearGear.com and debt collector Fidelity Information Corp, alleging violations of the Fair Credit Reporting Act.

Washington, D.C.-based Public Citizen, a nonprofit consumer advocacy group, filed the complaint on behalf of the couple.

The suit is asking for a judge to invalidate the disputed fine and award damages for alleged defamation, intentional interference with economic relations, and intentional infliction of emotional distress.

The complaint alleges KlearGear violated the federal Fair Credit Reporting Act by failing to correct misinformation it sent to the credit reporting agencies.

KlearGear, which sells gadgets and geek toys, identifies its headquarters as being in Grandville and its posted address is 2939 Wilson Ave. SW. Last month, the company listed a mail forwarding service located at 2885 Sanford Ave. SW as its address.

The company incurred the wrath of the Internet this fall after a Utah TV station reported on the plight of the Palmers, who have been fighting the negative effects of posting a bad review of the company on RipoffReport.com back in 2009.

The filing accuses KlearGear of abusing the credit reporting system in an alleged attempt to extort money from the couple. The company cited a non-disparagement clause in its online terms of service as justification for fining them $3,500 in May 2012 and then reporting the fine as unpaid to credit reporting agencies.

The filing alleges the couple have since paid higher interest rates on loans, were refused credit cards and were unable to heat their house for three weeks in Oct. 2013 because they could not obtain credit to replace a broken furnace.

According to the suit, the non-disparagement clause cited by KlearGear as justification for the fine was added three years after the original transaction.

The story prompted widespread public outcry online.

“A company may not retaliate against a customer for a critical review by demanding money under a penalty clause in contractual fine print or by wrecking the customer’s credit,” said Scott Michelman, the Palmers’ attorney.

The 616 area code "media relations" number for KlearGear is non-working.

Garret Ellison covers business, government and breaking news for MLive/The Grand Rapids Press. Email him at gellison@mlive.com or follow on Twitter & Instagram