CEO DATELINE - States considering laws to protect online negative reviews
CEO DATELINE - States considering laws to protect online negative reviews
- June 17, 2016 |
- Walt Williams
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That one star review you posted on Yelp could land you in a lawsuit unless you live in California and Maryland, which are the first in what could be a growing number of states that protect reviewers from legal action from angry business owners.
Both states have enacted laws prohibiting companies from forcing customers to sign "non-disparagement" clauses as a condition of doing business with them, the online news site Stateline reported. Such "Right to Yelp" laws have won the support of at least two national trade associations, although one group representing small businesses has yet to take a stance on the matter.
The California law, which was enacted in 2014, fines businesses up to $15,000 for violations, depending on whether the company in question is a repeat offender. The Maryland law was enacted earlier this year and labels non-disparagement clauses an unfair and deceptive trade practice under the state's consumer protection law.
The National Retail Federation and the Internet Association—of which Yelp is a member—support "Right to Yelp" laws. But the National Federation of Independent Business is more wary, although it has not taken a stance either pro or con. Small businesses often complain that review sites like Yelp have little in the way of quality control to filter out false or misleading reviews. But at the same time, NFIB supports freedom of speech.
"Small-business owners are very pro-First Amendment," Karen Harned, executive director of NFIB's Small Business Legal Center, told Stateline. "We're not sure gag clauses are the right solution." http://bit.ly/1S9eLIe
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