Law Office of Jason H. Rosenblum, PLLC

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NYC Small Business Lawyer Warns, “Make Sure Your Consumer Contract Doesn’t Break this New Law!”

On March 14th 2017, the Consumer Review Fairness Act (CRFA) went into law. This law will invalidate many consumer contract clauses related to online reviews. You may not even be aware of this, but before CRFA, companies could prevent their customers from publishing negative reviews online. A clause was typically inserted in their standard consumer contract or terms of service. Once signed, the customer was not allowed to publish negative reviews about the business. Imagine not being able to complain about the terrible house painter you hired on Facebook!

If a negative online review was found, the company could request that it be removed. Also, if the clause so indicated, legal action could be able taken against the customer. This clause was very popular for online retailers.  Many times the clause itself was a deterrent to a customer posting a negative review even if accurate.

No one really knows if these provisions were enforceable because no one challenged in court. But, it doesn’t really matter now because the new law makes those contract clauses unenforceable. The new law forbids any contract that restricts the consumer’s right to publish reviews.

Are you in violation?

To comply with the new law, make sure that you remove any prohibited clauses from your standardized consumer contracts. The law applies to both online and paper contracts. But, you do still have some time. The enforcement of the new law does not begin until December 14th 2017. However, you really should get ahead of the game here so that you don’t get caught later.

If you need any advice or assistance in complying with the new law please contact the Law office of Jason H. Rosenblum, PLLC at (888) 666-0062. Our South Carolina and New York small business attorneys are available to help you.

DISCLAIMER: The information contained in this article is for informational purposes only and is not legal advice or a substitute for obtaining legal advice from an attorney.

Law Office of Jason H. Rosenblum, PLLC © 2017 All rights reserved.

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