Published on:

Illinois Passes New Law Restricting Companies From Prohibiting Negative On Line Reviews Which Are Protected by the First Amendment

Online reviews can have a powerful effect on a business these days. Before trying a new product or service, the first thing most people do is check online for reviews other customers have posted about the company and/or their products/services. Websites like Yelp were invented for that very purpose, but reviews have spread to other places online, including Google and social media platforms, such as Facebook and Twitter.

In addition to showing users individual reviews, they generally also display an average rating out of five stars at the top, and just a few one- or two-star reviews is all it takes to have a significant effect on a company’s overall ranking.

Because you’re never going to please everyone, companies have started retaliating against these negative reviews by putting “gag” clauses in their contracts with their customers. These are generally included in the Terms of Service, which most people accept without reading. Our time is limited and few people see the point in reading through a lengthy contract every time they go to buy something or view a website (in some cases, companies state that simply using a site counts as agreeing to their terms of service).

But companies have been enforcing these “gag rules,” whether customers were aware of them or not. Some of them charge a fine for each negative review. At least one company sued a couple for an exorbitant $1 million for posting a one-star review. That case was dismissed, but even such outlandish cases require people to spend the time and money to defend themselves in court – or take down their reviews.

Last year, President Barack Obama signed into law a federal bill that forbade companies from including or enforcing such “gag rules” in their customer contracts. But because that’s a federal law, it is up to the Federal Trade Commission to enforce it, meaning people can’t sue companies for illegally including such a provision in their contracts, or for trying to silence users who post negative reviews.

Now that Governor Bruce Rauner has signed a similar state law, Illinois residents will be able to sue companies for trying to prevent them from posting honest reviews.

While the new law protects the First Amendment’s provision of the right to free speech, it does not protect defamation. If someone posts a false review they know to be false, made with the intention of doing harm to the business, then the company maintains the right to sue that person for defamation.

The new law passed without opposition in the Illinois House and Senate, and no member of the Illinois Retail Merchants Association objected to it. Neither the retail organization nor the Chicagoland Chamber of Commerce held any official positions on the new law.

This is an important piece of legislation protecting individuals free speech rights from intrusive form contracts. 

Our Naperville 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 defend 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 Lisle and Elmhurst 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 thirty years 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 Hinsdale and Westmont have more than three 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 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 Wheaton and Naperville, 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.