Non-Disparagement Clauses & What Businesses Need to Know About the Consumer Review Fairness Act

With the use of the internet making it easy, customers and consumers are able to voice their opinions about businesses with negative and positive opinions. Because of these reviews that have helped the everyday consumer’s purchase decisions, both large and small businesses have been hurt and mired. The non-disparagement clauses have gained popularity due to the many outlets that consumers have available to leave reviews about businesses. Today, we at Kajioka & Associates, Attorneys at Law, would like to elaborate briefly on non-disparagement clauses.

Non-Disparagement Clause Meaning

From the language inserted in a contract or agreement, a non-disparagement clause is to attempt to prevent the receiver of a good or service from posting negative reviews about the seller or service provider. Also known as a gag clause, a non-disparagement clause may want to consider seeking legal counsel before adding this clause into your contract or terms of service.

Consumer Review Fairness Act

With a non-disparagement clause, even worst critics can’t be silenced by a business today. For most businesses, even an unhappy customer is what it is. Few businesses tried to take matters into their own hands by putting provisions that allowed them to penalize or sue a customer for posting a negative review. In December of 2016 as the Federal Trade Commission took notice of these cases congress passed the Consumer Review Fairness Act. The law was passed in response to reports of businesses retaliating excessively to help prevent people from leaving an honest review about a product or service they received. To enforce a penalty fee for a review or require people to relinquish their intellectual property rights for their review the law makes it illegal to use a contract provision that restricts customers from leaving reviews for companies. The law will also protect businesses from people leaving inappropriate or irrelevant content, however.

Non-Disparagement Employment Agreement

To protect your business in different aspects, you may find you need a non-disparagement clause. Independent contractors as well as employee/employer contracts are exceptions to the Consumer Review Fairness Act. Non-disparagement clauses can prove to be very useful when enforcing a settlement agreement due to a dispute. In the event you are considering adding a non-disparagement clause to your contract, consult with a Nevada business lawyer from the office of Kajioka & Associates, Attorneys at Law. In the future and find out if your business needs this provision, you can be better equipped to protect your business’ interest.

Criminal Defense, Personal Injury, Business Attorneys & More in Greater Las Vegas, Nevada

Your business can be better prepared with not only a non-disparagement clause, but in other avenues with the help of Kajioka & Associates, Attorneys at Law. To help protect you, your business, employees, and other assets, our attorneys specialize in business law and have the experience needed. We can discuss how the non-disparagement clause can affect your business along with any other concerns you may have. Call Kajioka & Associates, Attorneys at Law to help you make your business a success.