Truthful online reviews will soon be protected by federal law | Courtesy of Shutterstock
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Ruth de Jauregui | Dec 4, 2016

Truthful online reviews will soon be protected by federal law

The U.S. Senate implemented new protections on free speech Monday with the passage of H.R. 5111, "The Consumer Review Fairness Act," which prohibits gag clauses that could prevent truthful reviews of companies and services by consumers.

"This law is about protecting consumers who post honest feedback online," Energy and Commerce Committee Vice Chairman Leonard Lance (R-NJ) said. "Online reviews and ratings are critical in the 21st century, and consumers should be able to post, comment and tweet their honest and accurate feedback without fear of retribution. Too many companies are burying non-disparagement clauses in fine print and going after consumers when they post negative feedback online. This will now end."

The bill has garnered bipartisan support. It authorizes the Federal Trade Commission (FTC) and states to pursue civil penalties against businesses that attempt to silence customers who post unfavorable reviews.

H.R. 5111 is one of the Disrupter Series reviewed by the Energy and Commerce Committee. The committee continues to work on legislation that brings the law up to date with the innovations of 21st century technology and culture.

"The Energy and Commerce Committee has a proud record of protecting and empowering consumers, and this bipartisan solution will help restore fairness for online reviews," Committee Chairman Fred Upton (R-MI) said. "Websites like Yelp and Angie’s List have become invaluable resources for folks in the 21st century, offering insight on everything from finding a restaurant, hotel room, to a handyman. The bottom line is that consumers shouldn’t fear retribution from a company when they post an honest review. I look forward to this bill by Rep. Lance being swiftly signed into law and becoming an important part of our record of success."

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