Passed by unanimous consent by the Senate on Monday, the Consumer Review Fairness Act will make it illegal for businesses to include “non-disparagement” or “gag” clauses which limit a customer’s right to share bad reviews. The hearing on the bill highlighted the 2013 lawsuit Palmer vs. KlearGear, where KlearGear demanded plaintiff Jen Palmer remove a negative online review or face a $3,500 fine based on a gag clause on the company’s Terms of Service. Palmer refused to pay the fine or take down the review, so KlearGear sent the $3,500 fine to a collections agency, negatively impacting Palmer’s credit.
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