Posts tagged Gag Clauses
President Obama Signs the Consumer Review Fairness Act Into Law

President Obama signed a number of bills into law on Thursday, most notably H.R. 5111, the “Consumer Review Fairness Act of 2016”. The legislation, which passed both houses of congress at the start of December, “makes certain clauses of a form contract void if it prohibits, or restricts, an individual from engaging in a review of a seller’s goods, services, or conduct.”

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Techdirt: Here Are The Companies That Want To Charge You $2,500-$100,000 For Negative Reviews

From our friends at Techdirt:

Geek gadget also-ran KlearGear gained internet infamy thanks to the following paragraph tucked away on its “Terms of Sale and Use” page:

In an effort to ensure fair and honest public feedback, and to prevent the publishing of libelous content in any form, your acceptance of this sales contract prohibits you from taking any action that negatively impacts KlearGear.com, its reputation, products, services, management or employees.

Tacked onto this absurd redefining of “fair and honest feedback” was a $3,500 fee. This was levelled at a couple who complained about the non-delivery of products it had paid for. This went to court, and the couple was awarded over $300,000 in a default judgement when KlearGear no-showed.

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