Legislation Sent to Obama Would Ban Clauses Muzzling Online Consumer Reviews

Bipartisan legislation that would ban the use of so-called "gag clauses" that permit companies to retaliate against customers who post negative reviews online about products and services was sent to President Barack Obama for his signature. "By ending gag clauses, this legislation supports consumer rights and the integrity of critical feedback about products and services sold online," said Senate Commerce Committee Chairman John Thune, R-S.D., in a Monday news release. The Senate, which passed the Consumer Review Freedom Act (S-2044) last year, approved the House version (HR-5111) Monday by unanimous consent. Both chambers held hearings and passed bills outlawing the practice over the past year -- actions supported by consumer protection groups and companies like TripAdvisor and Yelp (see 1511040028 and 1601150066). TechNet President Linda Moore praised the Senate for approving the bill. “We are now into the holiday season, and nearly 70 percent of consumers will rely on reviews to purchase a gift for a loved one," she said in a Tuesday statement. "Those consumers should never hesitate to post a candid review for fear of retaliation. By banning the use of non-disparagement clauses, the Senate has sent a strong message that it is unacceptable to punish consumers for posting honest reviews online."