New federal law offers consumer protection for negative online reviews

[REWahoo]

I saw in the recent issue of Consumer Reports that the Consumer Review Fairness Act was signed into law in December. This law prohibits non-disparagement, or “gag” clauses, in consumer contracts designed to discourage negative online reviews.

While the law doesn't give reviewers free reign to make outrageous and untruthful statements when writing a review, it does strike a blow for free speech.

While the new law should eliminate such clauses from contracts, it does not mean the company cannot still sue a client over a negative review, said Alderman.

“The law voids contract provisions that prohibit, and try to punish, individuals from asserting their First Amendment rights to express an opinion about goods or services,” he said. But “a person could still be subject to suit under our defamation and liable laws if what they say is false. An honest opinion is, however, protected.”

Read more here: New federal law prohibits non-disparagement clauses in contract to prevent online reviews | The Star-Telegram

 

[audreyh1]

Good to know!

Didn't realize it was creeping into sales contracts - yikes!

 

[Walt34]

Good to know!

Didn't realize it was creeping into sales contracts - yikes!

Yes, I've seen many articles about that happening. Rarely does anyone have to pay money for damages, but they are out their attorney's fees and hassle time.