New law protects online reviewers

     Any consumer who posts online reviews-- or any business involved in trying to control negative online reviews -- should take note of the new Consumer Review Fairness Act of 2016.  This Act was signed into law on December 14, 2016 by President Obama.  The Act significantly affects the ability of companies to limit negative reviews.  It prohibits businesses from using standardized contract clauses which attempt to deter customers from posting negative reviews and also voids clauses in form contracts prohibiting or restricting an individual from providing an online review.  Further, it prohibits clauses which impose a penalty or fee against an individual for submitting an online review.

      More technically, the Act  voids contract clauses that claim ownership in the underlying intellectual property used in a review or to give feedback. The Act provides that a limited license is granted to the reviewer so that the content can be displayed in the review.  This provision attempts to protect authors of negative online reviews against aggressive tactics used by businesses.

     Of course, the Act does not affect traditional common and statutory  defamation laws, so businesses still have some protection, at least when a defamatory post can be ascribed to an identifiable poster, and posters should understand that defamatory content may still lead to litigation against them.