The Federal Trade Commission ("FTC") has settled its
first Consumer Review Fairness Act
("CRFA") violation investigations. Enacted in December of
2016, the CRFA prohibits businesses from offering provisions in
form contracts that prevent customers from publicly expressing
honest reviews about products or services, or penalizing those
customers who have publicized such reviews. Complaints were filed
against: 1) A Waldron HVAC, LLC and its owner; 2) National Floors
Direct, Inc.; and 3) LVTR LLC and its owner (collectively,
"Respondents"). In the complaints, the FTC alleged that
Respondents violated Section 2(c) of the CRFA, by offering
customers form contracts that contained non-disparagement
provisions. In each case, the Respondents have accepted proposed
consent agreements, and are awaiting public comment before a final
order is entered.
