New California Bill Protects Consumer Reviews of Products | Practical Law

New California Bill Protects Consumer Reviews of Products | Practical Law

Governor Jerry Brown of California recently signed a new bill that protects consumers' ability to write reviews about goods and services they have purchased. Under this new law, a contract or proposed contract for the sale or lease of consumer goods or services cannot restrict a consumer from making statements regarding the seller or lessor or its goods or services.

New California Bill Protects Consumer Reviews of Products

Practical Law Legal Update 6-581-4405 (Approx. 3 pages)

New California Bill Protects Consumer Reviews of Products

by Practical Law Commercial
Published on 16 Sep 2014 • USA (National/Federal)
Governor Jerry Brown of California recently signed a new bill that protects consumers' ability to write reviews about goods and services they have purchased. Under this new law, a contract or proposed contract for the sale or lease of consumer goods or services cannot restrict a consumer from making statements regarding the seller or lessor or its goods or services.
On September 9, 2014, California Governor Jerry Brown signed a bill to amend California's Civil Code by adding a new category of unlawful contract in California. The bill, which adds Section 1670.8 to the Civil Code, prohibits a contract or proposed contract for the sale or lease of consumer goods or services from including a provision that waives the consumer's right to make statements regarding either:
  • The seller or lessor or its employees or agents.
  • The goods or services.
Provisions such as these are sometimes used to prevent consumers from writing negative reviews about a business or its products. However, Section 1670.8 makes it unlawful for businesses to:
  • Include such a provision limiting the consumer's ability to write reviews.
  • Otherwise penalize a consumer for making a protected statement.
If a party violates this section, it can face:
  • Civil penalties of:
    • $2,500 for the first violation;
    • $5,000 for each subsequent violation; and
    • $10,000, if the violation is willful, intentional or reckless.
  • A civil action from either a consumer or a state or city official.

Practical Implications

California's new law is the first state law to make it unlawful for businesses to contractually restrict consumers from writing reviews about purchased or leased goods or services. Businesses that deal directly with consumers in California should review their applicable consumer contracts to ensure that they do not contain provisions restricting the consumers' ability to make statements or reviews about the company.