Consumers' right to yelp.

AuthorGreenberg, Pam
PositionTRENDS

Who hasn't bought something online without first reading some of the reviews, or clicked on "next" when something pops up with only a one-star rating? Reviews and review sites, like Yelp, are hugely popular. One consumer survey found that 92 percent of people read online reviews and 87 percent would never consider using a business that has a rating of only one or two stars.

Given the potential impact of negative reviews, some businesses have tried to thwart them. A few have written and posted fake positive reviews, resulting in crackdowns by the Federal Communications Commission or state attorneys general for false advertising.

Other businesses have taken an approach that has prompted legislation. They have inserted non-disparagement clauses into the fine print of service agreements that customers unknowingly agree to that limits their rights to complain about the business online. Too often, consumers hit the "accept" button in online contracts without fully understanding or even reading them.

A case that made headlines involved a couple who posted a negative online review in February about a Dallas pet-sitting service they had used. When they refused to remove the review, the company hit them with a lawsuit asking for $6,700 in damages. Unbeknownst to them, the couple's signed agreement with the company prohibited them from making statements or taking actions that would harm the business.

[ILLUSTRATION OMITTED]

Earlier incidents prompted lawmakers in California to pass the nation's first ban on this practice in 2014. Known as the "Right to Yelp" law, it prohibits companies from using non-disparagement clauses unless the consumer knowingly, voluntarily and intelligently waives his or her right to complain.

As the use of non-disparagement clauses increases, so does the number of bills introduced to address the issue. Five states--Maryland, Massachusetts, New Jersey, Oklahoma and South Carolina--considered legislation this year to protect consumers who post negative reviews.

Maryland Delegate Jeff Waldstreicher (D) sponsored legislation this year to protect a consumer's right to post an honest, negative critique but allow a company to sue for defamation if the...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT