The Indiana attorney general has sued a small hotel in Nashville, south of Indianapolis, over claims that it illegally charged its own customers a $350 fee for leaving negative reviews online. The hotel's Yelp page is currently listed as being "under dispute."

According to the lawsuit, State of Indiana v. Abbey Management, Inc., which was filed in state court in Brown County on December 15, the case originated when a woman named Katrina Arthur stayed at the Abbey Inn. According to her official April 2016 complaint with the AG's office, she stayed just one night in March 2016 and paid $230. Arthur wrote that the hotel "smelt like sewer" in an online review.

Then, on April 2, 2016, Arthur received a letter from Andrew Szakaly, who purported to be an attorney representing the hotel.

"Szakaly made no mention he also owned the business or was affiliated with it in any way other than legal representation," the AG's office wrote, adding that Szakaly threatened to sue Arthur for libel if she did not remove the negative review.

Arthur was then charged $350 four days later. Indiana attorneys, in their complaint, called the hotel's practices "unfair, abusive, and deceptive" for not posting this policy anywhere publicly available at the hotel.

An archived copy of the policy states:

Guests agree that if guests find any problems with our accommodations and fail to provide us the opportunity to address those problems while the guest is with us, and/or refuses our exclusive remedy, but then disparages us in any public manner, we will then be entitled to charge their credit card an additional $350 damage. Should guest refuse to retract any such public statements legal action may be pursued.

The hotel, which appears to have taken down its website as a result of the fracas, did not respond to Ars' requests for comment.

Previously, Ars has covered several instances of unenforceable non-disparagement clauses and negative online reviews.

“Social media blackmail”

On Thursday, Ars called a phone number listed in the whois records for the now-defunct website abbey-inn.com. The woman who responded declined to identity herself and told Ars that this was "old news" and that the company "did not exist anymore."

The whois records show that abbey-inn.com is registered to a Nancy Szakaly of the Log Cabin Vacation Company. Ars also sent a message to the email address listed there, but it went unanswered. Nancy Szakaly also appears to be the owner of Log Cabin Web Design, which counts Andy Szakaly as one of its clients.

Andrew Szakaly is a registered lawyer in Indiana, but his bar listing has no contact information other than a postal address. He is also currently serving as the chief deputy prosecutor of Brown County.

According to the Associated Press , Andrew Szakaly said in a statement that he is the "president and sole shareholder of Abbey Management Inc.," the company that was sued by the Indiana attorney general’s office. But, the statement continued, operation of the hotel was transferred to a new entity as of January 2017.

Szakaly's statement also states:

Several years ago, the Inn began to experience what has become known in the hospitality industry as "social media blackmail"... A guest would complete their stay, leave without making any complaints regarding their stay, then later demand a refund or they would post negative comments regarding the Inn on social media. In an attempt to meet the guest's needs while protecting itself from false reviews, the Inn, between Fall 2015 and Summer 2016, required prospective guests to confirm they had read the Inn's 'complaint policy' (published on the Inn's website & repeated on the online booking site) when they booked online and when they arrived for their stay.

Szakaly continued, noting that it was a "shame" that the "actions of a disgruntled guest" would "damage" the couple now managing the hotel.

Family business

One of the hotel's new owner-operators, Amanda Sweet, is reportedly Szakaly’s daughter. She told the AP that the 24 hours since news of the lawsuit became public have been "horrible." She said that she and her husband, who co-owns Abbey Inn with her, had no knowledge of the previous policy. According to her, they do not have such a disparagement clause in their current agreements.

"We've been pouring ourselves into making positive renovations, bringing this beautiful building back to life," she said. "This is our livelihood, and we don't want it to go away."

Sweet also told the Indianapolis Star that she has received death threats as a result of the kerfuffle.

According to RTV6, Sweet is now planning to close the hotel and re-open under a new name.

"People have the right to truthfully complain about bad service," Attorney General Curtis Hill said in a statement sent to reporters. "They certainly should not be afraid they might be penalized for exercising this right. If you believe you have suffered retaliation or been threatened as a result of posting a truthful review, please contact our office and we will investigate your complaint."

In Indiana, individuals may file consumer complaints with the Office of the Attorney General by going online to indianaconsumer.com or by calling 1-800-382-5516.