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New law reaffirms right to post negative reviews online

Under a new federal law, individuals have a right to post truthful negative reviews about a product or service provider. That’s the case even if they previously signed an agreement that prohibited such reviews.

Over the past few years, this controversial business practice of including non-disparagement clauses in contracts or terms of service has led to a number of lawsuits. These so-called “gag clauses” are intended to deter customers from writing negative reviews, and require them to pay a fee if they do so despite the contract.

The new Consumer Review Freedom Act bars companies from using these clauses.  It gives the Federal Trade Commission and the states the power to enforce the law, allowing them to take legal action against businesses that fail to remove these clauses from their contracts.  

The Better Business Bureau already had prohibited accredited businesses from using gag clauses.

Yelp, TripAdvisor and several other entities that regularly post consumer reviews have stated their support for the new legislation.

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