Consumer Review Fairness Act Settlement Agreement

On 4 November 2015, the Senate Trade Committee held a hearing on the effects of non-denigration of clauses in formal contracts. Witnesses said that non-disparagement clauses have been used in many sectors, including healthcare, retail and hospitality. The commission also heard testimony from Jen Palmer, a consumer and plaintiff in Palmer v. Kleargear.com. [1] In this case, an online retailer demanded that Ms. Palmer withdraw a negative online rating or pay $3,500 in damages, as the website`s terms of use contained a non-disparagement clause. The Senate Commerce Committee received testimony that California had enacted a law to prohibit such clauses in non-negotiable contracts.