Consumer Review Fairness Act

The Consumer Review Fairness Act (CRFA) is a federal law which was enacted in 2016 to protect consumers' right to express their opinions about businesses and services without fear of retaliation or legal action. In this blog, we'll take a closer look at what the CRFA is, why it was created, and what it means for businesses and consumers.

What is the Consumer Review Fairness Act?

The Consumer Review Fairness Act is a federal law that prohibits businesses from using clauses in their contracts that restrict consumers' right to leave negative reviews about the business’s products or services. The CRFA also prohibits businesses from threatening to take legal action against consumers who leave negative reviews or penalize them in any other way.

Why was the Consumer Review Fairness Act created?

The CRFA was created to protect consumers' right to express their opinions about businesses and services without fear of retaliation or legal action. Prior to the law's enactment, some businesses included clauses in their contracts which prevented them from leaving negative reviews or making negative comments about the business. In some cases, businesses would threaten to take legal action against customers who left negative reviews, even if the reviews were truthful and accurate.

The CRFA was created to put an end to these practices and ensure that consumers could express their opinions freely and openly without fear of retaliation. The law was also intended to encourage businesses to provide better products and services by allowing customers to voice their opinions and share their experiences.

What does the Consumer Review Fairness Act mean for businesses?

The CRFA means that businesses can no longer use clauses in their contracts which restrict customers’ ability to review the business, its products, or its services. This means that businesses cannot prevent customers from leaving negative reviews or penalize them in any other way for doing so. Businesses that violate the CRFA can face fines and legal action.

The CRFA also means that businesses must be careful about how they respond to negative reviews. While businesses are allowed to respond to negative reviews and provide their side of the story, they cannot threaten or intimidate customers or try to silence them in any way.

It should be noted that the CRFA does not prohibit businesses from taking legal action against individuals who post reviews that contain false information or otherwise defame the company. False reviews are still illegal and are generally actionable.

What does the Consumer Review Fairness Act mean for consumers?

The CRFA means that consumers can express their honest opinions freely and openly without fear of retaliation or legal action. Consumers can leave negative reviews or make negative comments about businesses without worrying about being penalized by the business for which they are leaving a review.

Consumers should still be careful when leaving reviews, and ensure their reviews are truthful and accurate. Reviews cannot and should not contain defamatory or libelous statements. If a review contains false or misleading information, a business may still be able to take legal action.