In bid to protect online reviews, Congress OKs bill banning gag clauses in consumer contracts
Congress has passed a bipartisan bill that aims to protect negative online reviews by banning nondisparagement clauses in nonnegotiable consumer contracts.
The bill is called the Consumer Review Fairness Act, report the Wall Street Journal Law Blog, Ars Technica, the Danbury News Times and a press release.
The bill voids any provision in form contracts that bars consumers from posting or communicating reviews about goods and services, that imposes penalties for the reviews, or that requires consumer to transfer intellectual property rights in the reviews.
The bill does not apply to contracts with employees and independent contractors, and it doesn’t shield defamatory reviews. The bill gives enforcement authority to the Federal Trade Commission and the states.
“The bill we’ve now sent to the president’s desk will ensure that the internet remains a place where the freedom of speech can thrive and protect honest consumers from retaliatory litigation,” said a bill co-sponsor, U.S. Rep. Darrell Issa, R-Calif., in a statement.
President Obama is expected to sign the bill, according to the Law Blog.
