FTC Announces First Actions Exclusively Enforcing the Consumer Review Fairness Act

FTC Announces First Actions Exclusively Enforcing the Consumer Review Fairness Act

Companies included illegal non-disparagement clauses in form contracts with consumers

• Each has agreed to separate Commission orders barring them from using such non-disparagement clauses in form contracts for goods and services, and requiring them to notify consumers who signed such contracts that the prohibited text is not enforceable.
• These gag clauses are illegal, and companies that know it but use them anyway will be subject to civil penalties.
• The CRFA, which the FTC enforces at the direction of Congress, prohibits non-disparagement provisions in consumer form contracts.