Published on:

Yelp Reviewers May Receive Extra Protection From Libel Lawsuits

The First Amendment of the U.S. Constitution gives everyone the right to speak freely about virtually everything and everyone, so long as what they say is not false or doesn’t infringe on intellectual property rights. People are free to voice opinions that do not contain factually false information. This protection includes negative reviews of companies providing products and services, but many legislators currently feel that consumers are in need of an extra layer of protection.

The internet and review sites like Yelp have made it easier than ever for customers to post public reviews of companies as soon as the transaction has been completed. While that may not sound threatening, a few bad reviews can significantly decrease a company’s overall rating and hinder future business, even when the subject of the complaint is insignificant and arbitrary.

So businesses have started retaliating by including clauses in their consumer contracts that forbid their customers from posting negative online reviews. Some companies have even acted on their threats by taking legal action against consumers who post negative reviews, usually for unreasonably large amounts of money when compared the transaction in question. For example, one hotel in New York charged $500 per negative review posted to Yelp, while another company sued a couple in Utah for thousands of dollars over a negative review pertaining to a small purchase.

Not only does the compensation companies are seeking for negative reviews appear to be inordinately large, but it also comes as a surprise to many customers who get sued. Since most people don’t have the time to read the Terms and Conditions of every single company they do business with, they don’t even know they’ve violated a contract until after the company has already sued them.

When companies are tricking their customers into signing away their constitutional rights, it might be time for further regulations. Last year, President Barack Obama signed the federal Consumer Review Fairness Act, which voids any contract that prohibits customers from reviewing companies in either an oral, written, or pictorial manner, or from conducting performance assessments or analyses.

More recently, the Illinois Senate has been trying to pass a similar law, commonly known as a “Right to Yelp” law in other states that have enforced similar protections for their consumers. Senator Steve Stadelman, a Democrat from Rockford, proposed the bill, which has been approved by the Illinois Senate’s Judiciary Committee. Now the bill just has to pass the full state Senate, the House and get signed by the governor before it can become state law.

There was just one dissenting vote against the bill, and that came from Senator Jason A. Barickman, a Republican senator from Bloomington. In a statement, Barickman said he doesn’t dispute that consumers should have the right to post whatever they want online, but he also thinks companies should be able to put whatever they want into their own Terms of Service contracts. He points out that if people don’t want to do business with companies that include what they perceive to be unfair provisions, then no one is going to force them to do business with those companies and the free market should take care of the problem.

Our Chicago libel and slander lawyers concentrate in this area of the law. We have defended or prosecuted a number of defamation and libel cases including cases representing a high profile athlete against a well known radio shock jock, a consumer sued by a large car dealer in federal court for negative internet reviews and videos, one of Loyola University’s largest contributors when the head basketball coach sued him for libel after he was fired, a lawyer who was falsely accused of committing fraud with the false allegation published to the Dean of the University of Illinois School of Law where the lawyer attended law school and the President of the University of Illinois.

Our Chicago defamation attorneys┬ádefend individuals’ First Amendment and free speech rights to post on Facebook, Yelp and other websites information that criticizes businesses and addresses matters of public concern. Our Chicago Cybersquatting attorneys also represent and prosecute claims on behalf of businesses throughout the Chicago area including in Wilmette and Glenview who have been unfairly and falsely criticized by consumers and competitors in defamatory publications in the online and off line media. We have successfully represented businesses who have been the victim of competitors setting up false rating sites and pretend consumer rating sites that are simply forums to falsely bash or business clients. We have also represented and defended consumers First Amendment and free speech rights to criticize businesses who are guilty of consumer fraud and false advertising.

Super Lawyers named Chicago and Oak Brook business trial attorneys Peter Lubin and Vincent DiTommaso Super Lawyers in the Categories of Class Action, Business Litigation and Consumer Rights Litigation. DiTommaso Lubin Austermuehle’s Oak Brook and Chicago business trial lawyers have over a quarter of century of experience in litigating complex class action, consumer rights and business and commercial litigation disputes. We handle emergency business law suits involving injunctions, and TROS, defamation, libel and covenant not to compete, franchise, distributor and dealer wrongful termination and trade secret lawsuits and many different kinds of business disputes involving shareholders, partnerships, closely held businesses and employee breaches of fiduciary duty. We also assist businesses and business owners who are victims of fraud or defamatory attacks on their business and reputations.

DiTommaso Lubin Austermuehle’s DuPage County defamation and slander lawyers near Elgin and Joliet have more than two and half decades of experience helping business clients unravel the complexities of Illinois and out-of-state business laws. Our Chicago business, commercial, class-action and consumer litigation lawyers represent individuals, family businesses and enterprises of all sizes in a variety of legal disputes, including disputes among partners and shareholders as well as lawsuits between businesses and and consumer rights, auto fraud, and wage claim individual and class action cases. In every case, our goal is to resolve disputes as quickly and successfully as possible, helping business clients protect their investments and get back to business as usual. From offices in Oak Brook, near Evanston and Highland Park, we serve clients throughout Illinois and the Midwest.

If you are the victim of a defamatory attack on your business or a consumer who has been sued to stop you from posting criticism of a business on line at Yelp or anywhere else, contact one of our Oak Brook and Chicago defamation lawyers for a free consultation at (877) 990-4990 or online by filling out our contact us form.