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. Continue reading