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Jennifer Moo

Bill Outlawing “Gag Clauses” That Punish Customers For Writing Negative Reviews Goes To President

After more than a year of waiting, Congress has finally okayed a piece of legislation that, if signed by the president, will stop companies from using so-called “non-disparagement” or “gag” clauses to prevent or discourage customers from writing honest reviews. [More]

Jennifer Moo

House Passes Bill Outlawing “Gag Clauses” That Try To Punish Customers For Writing Negative Reviews

We’re nearing the finish line for a piece of legislation that will make it illegal for companies to put so-called “gag orders” in their customer contracts to prevent consumers from sharing their honest opinions with the rest of the world. [More]

Congress Inches Closer To Outlawing “Gag Clauses” That Block Customers From Writing Negative Reviews

Congress Inches Closer To Outlawing “Gag Clauses” That Block Customers From Writing Negative Reviews

The House of Representatives will soon get to vote on a bill that would make it illegal for a company to use so-called “non-disparagement” or “gag” clauses in their contracts and user agreements to prevent customers from writing or saying anything negative about that company. [More]

Jennifer Moo

Congress May Finally Outlaw “Gag Clauses” That Block Customers From Writing Negative Reviews

Last December, it looked like federal lawmakers were getting serious about so-called “non-disparagement” or “gag” clauses in consumer contracts that forbid customers from saying anything negative about a purchase or transaction. The U.S. Senate quickly passed a bipartisan bill that would outlaw the practice, but the legislation has idled in the House since. However, a new, virtually identical bill may finally be evidence of movement on this issue. [More]

Senate Committee OKs Bill Barring Companies From Using “Gag Clauses” To Block Negative Reviews

Senate Committee OKs Bill Barring Companies From Using “Gag Clauses” To Block Negative Reviews

A bill that would enact a nationwide ban on the use of tricky “non-disparagement” or “gag” clauses to prevent consumers from providing their honest opinions in public forums is one step closer to becoming a law today, after the Senate Commerce Committee voted to approve the Consumer Review Freedom Act. [More]

Jennifer Moo

Things Are Looking Up For Federal Law Banning “Gag Clauses” That Prevent Customers From Writing Honest Reviews

While most companies understand that honest negative feedback is, at worst, an inevitability of doing business, and maybe even a chance to improve, some companies try to use non-disparagement, or “gag,” clauses that use threats of legal action or financial penalties to prevent customers from writing or saying anything negative about that business — even if what’s being said is 100% true. We’ve seen these in everything from cheapo cellphone accessories, to wedding contractors, to hotels, to dentists, to weight-loss products, to apartment complexes. California recently enacted a law banning this sort of behavior, and some courts have deemed these clauses unenforceable, but there is still no nationwide consensus on their legality. Previous attempts to create a federal ban on gag clauses have been dead on arrival at Capitol Hill, but the latest effort appears to have some life to it. [More]

Proposed Law Would Ban Penalties For Negative Online Reviews

Proposed Law Would Ban Penalties For Negative Online Reviews

Days after California Governor Jerry Brown signed a new state law outlawing the practice of using non-disparagement clauses to penalize consumers who complain about business transactions, a few members of the U.S. House of Representatives have introduced a similar piece of legislation that would ban this questionable practice in all states. [More]

Complain All You Want, California! State Outlaws Silly Non-Disparagement Clauses

Complain All You Want, California! State Outlaws Silly Non-Disparagement Clauses

In the wake of lawsuits over online retailers that try to charge customers huge fees for allegedly violating “non-disparagement” clauses that prohibit customers from complaining about their transactions, lawmakers in California have approved a bill outlawing the ridiculous practice. [More]

KlearGear.com Ordered To Pay $306K To Couple Who Wrote Negative Review

KlearGear.com Ordered To Pay $306K To Couple Who Wrote Negative Review

The saga of the harmless little negative online review that resulted in a $3,500 “Non-Disparagement Fee” continues, with a Utah court ordering the owners of KlearGear.com to pay damages of $306,750 to the couple who wrote that review. But whether the company will ever pay up is another story. [More]

The Terms of sale on the KlearGear website included this Non-Disparagement Clause that tried to put customers on the hook for $3,500 if they dared to complain about bad transactions.

KlearGear Defends $3,500 Non-Disparagement Fee, Says Court Ruling Doesn’t Count

Last week, a federal court in Utah issued a default judgment in favor of consumers who had been slapped with a $3,500 “non-disparagement fee” from e-tailer KlearGear.com because they wrote something negative about a failed transaction online. The company failed to show up to court to defend itself, but now claims it will fight that judgment because mail about the case was sent to the wrong address. [More]

The Terms of sale on the KlearGear website included this Non-Disparagement Clause that tried to put customers on the hook for $3,500 if they dared to complain about bad transactions.

Court Rules Company Can’t Collect $3,500 “Non-Disparagement” Fee For Negative Online Review

For months, we’ve been telling you about KlearGear.com, the online retailer that was trying to collect a $3,500 fee from unsatisfied former customers over a negative review because of a “Non-Disparagement Clause” inserted into the site’s Terms of Sale after the customers made the purchase. The customers have been trying to fight the ridiculous anti-consumer fee (which shouldn’t apply to them anyway, as they never agreed to it at the time of purchase), and finally sued the company after having their credit tainted by a bogus debt. Now a federal court has sided with the couple and tossed out the $3,500 fee. [More]

Debt Collection Company Actually Admits It Did The Wrong Thing After Bad Online Review

Debt Collection Company Actually Admits It Did The Wrong Thing After Bad Online Review

Does anyone currently see any pigs fluttering past the window? Or maybe there’s a new ice skating rink in hell? Because a debt collection company has actually admitted it was wrong. Specifically, the company that owned the supposed $3,500 debt a businesses levied against a customer who posted a negative review about an online shopping experience. [More]