(BREAKING) Non-disparagement clause ban introduced in Congress

Following in the footsteps of California's new law barring the use of non-disparagement clauses and providing a private cause of action for seeking or threatening to enforce one, today Reps. Eric Swalwell and Brad Sherman (both of California) introduced in Congress the "Consumer Review Freedom Act" that would render non-disparagement clauses unenforceable nationwide.

The text is available here.

Although the bill does not provide as robust remedies as California's law (which, unlike the new federal bill, provides a private cause of action for consumers and prohibits seeking or threatening to enforce a non-disparagement clause or retaliating against consumers for their speech), the bill does provide for enforcement by the FTC and by state authorities, and it prohibits even "offer[ing]" a contract containing such a non-disparagement clause.

Good to see Congress proposing a national solution to a problem that transcends the boundaries of any particular state. Let's hope the bill attracts the necessary support. One might particularly expect Utah's congressional delegation to take an interest in light of the KlearGear case, and the principle that consumers should be free to speak their minds ought be one that has broad appeal.

0 thoughts on “(BREAKING) Non-disparagement clause ban introduced in Congress

  1. Watergate Mike says:

    Somehow or other a law must be enacted stipulating that a “business” (as described in this Act) shall not deprive any human person, including employees and individual human contractors, of her/his Rights as are guaranteed by the US Constitution.

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