FTC Staff Guidance: It's 'Illegal' to Ban 'Honest Reviews'

If a company threatens legal action or bars a consumer's legitimate online review of a product or service, it can be disciplined by the FTC and state attorneys general, said the commission in a blog post that outlined staff guidance on how to comply with the Consumer Review Fairness Act that was passed into law in December. "It's illegal to ban honest reviews," the FTC tweeted Wednesday, a day after the post. The bipartisan law, which was heavily supported by industry and consumer groups (see 1612150021 and 1512150012), prevents businesses from using nondisparagement or gag clauses to prohibit consumers from sharing negative opinions about a company's conduct, product or service in online reviews, social media posts and uploaded photos and videos. The blog post offered information about specific conduct barred by the law, penalties for violations and what companies can do to protect themselves from "inappropriate or irrelevant content."