Hardware Retailing The Industry's Source for Insights and Information
In an age when Google is often your customers’ first stop to find information about your store, you probably groan—or worse—if your business gets a bad online review.
And what customers say about your business online may soon get extra protection from the law.
On Sept. 12, the U.S. House of Representatives passed the Consumer Review Fairness Act, The Wall Street Journal reports.
If the president signs the act into law, then consumers who post on online review websites like Yelp and TripAdvisor will be protected by the law, even if they signed agreements with stipulations that they can’t review the businesses online.
So, companies will have less traction if they attempt to sue customers for hurting their businesses with bad reviews.
“The bill prohibits so-called ‘gag clauses,’ or language in terms of service that prevent consumers from sharing the experiences they’ve had with companies,” CNN explains.
In the past, companies have sued customers for posting reviews online that they say were untrue or damaging to business. For example, Prestigious Pets, a Dallas pet-care service, sued customers for posting a one-star review on Yelp, The Wall Street Journal article says.
The new law would ensure that consumers who use review websites could freely express their opinions. The customers could, however, could still get in trouble if their reviews were untrue or “libelous, harassing, abusive, obscene, vulgar,” according to the proposed law.
If the Consumer Review Fairness Act passes, then the Federal Trade Commission will enforce the regulations, CNN reports.
