The U.S. Federal Trade Commission (FTC) has issued two
administrative complaints and proposed settlements enforcing the
U.S. federal Consumer Review Fairness Act (CRFA), against two
companies that had included "non-disparagement" clauses
in their consumer contracts, restricting consumers from posting
negative reviews online. The CRFA prohibits non-disparagement
provisions in consumer form contracts, which are standardized terms
used in selling or leasing goods or services, and that are imposed
on an individual without a meaningful opportunity for the
individual to negotiate the contracts' terms.
The proposed settlements ban the companies from prohibiting,
restricting or penalizing consumer reviews from consumers to the
companies, require the companies to proactively notify affected
consumers that the challenged contract provisions are void and that
they have the right to post honest reviews online. For one of the
companies, the settlement also requires it to dismiss
