Some businesses try to control their reputation with fine print. They add a clause to a service agreement or a website's terms that bars customers from posting negative reviews. Some go further and threaten a fee or a lawsuit if a customer complains in public.
That approach is illegal. It has been since 2016.
The law
The federal Consumer Review Fairness Act took effect in December 2016. It voids any clause in a standardized consumer contract that does one of three things:
- Restricts a customer's ability to review a business, its goods, services, or conduct
- Imposes a penalty or fee for leaving a review
- Forces a customer to hand over the rights to their own review
The protection is broad. It covers written reviews, social posts, photos, and videos. It applies in any forum, online or off.
The key term is "form contract." That means standardized terms a business hands a customer without a real chance to negotiate. Most terms of service, intake forms, and click-to-agree checkboxes fall into this category. If a gag clause sits inside one, it is void from the start. A business cannot even offer a contract that contains one.
What the law still allows
A business is not powerless. The law lets you remove or refuse a review that is confidential, defamatory, harassing, obscene, off-topic, or unlawful. You can also respond to any review and share your side.
What you cannot do is silence honest opinion. Disagreeing with a review does not make it false. The line is clear.
Enforcement
The Federal Trade Commission and state attorneys general enforce the law. A violation is treated the same as an unfair or deceptive practice under the FTC Act. That can mean financial penalties and a federal court order.
The states went first
Several states had their own anti-gag laws before the federal one passed, and they still apply.
California led in 2014 with a law often called the "Right to Yelp." It bans non-disparagement clauses in consumer contracts and carries civil penalties that climb for repeat and willful violations. Maryland followed in 2016 and treats gag clauses as an unfair and deceptive trade practice under state law. Illinois has a similar statute. Others have considered their own.
For a business serving customers in more than one state, the takeaway is simple. Both the federal law and the state laws are in force at the same time. Compliance means clearing the clause everywhere.
Why this matters for getting customers
Step back from the legal detail and the point becomes practical.
Customers choose a business before they ever visit a website. They read reviews. They scan ratings on maps and search. The review is the moment a stranger decides whether to trust you.
A gag clause does not protect that moment. It poisons it. The clauses are unenforceable, and the businesses that have tried to use them tend to make the news for the wrong reasons. A single threat against a reviewer can do more damage than the review ever could.
Reviews are not a risk to manage. They are demand you can capture. The businesses that win do not fight feedback. They earn it, ask for it, and answer it.
What to do instead
Three moves replace the gag clause and produce better results.
First, check your contracts and terms. If any clause restricts reviews, penalizes them, or claims rights to them, remove it. The clause is already void, and keeping it on the page is a liability.
Second, ask for reviews on purpose. Make the request part of how you finish a job. Steady, honest reviews carry more weight than a handful of old ones.
Third, respond to every review, good or bad. A calm, useful reply to a hard review shows the next customer how you handle problems. That is trust, built in public, where decisions get made.
You cannot silence what people say about you. You can give them a reason to say something good.
Common Questions
Is it legal to ban negative reviews in my terms of service?
No. The federal Consumer Review Fairness Act, in effect since December 2016, voids any clause in a standardized consumer contract that restricts reviews, penalizes them, or claims rights to them. The clause is void from the start, and you cannot even offer a contract that contains one.
What is a form contract?
A form contract is standardized terms a business hands a customer without a real chance to negotiate. Most terms of service, intake forms, and click-to-agree checkboxes count. Gag clauses inside these contracts are unenforceable.
Can I ever remove a review?
Yes, in limited cases. The law lets you remove or refuse a review that is confidential, defamatory, harassing, obscene, off-topic, or unlawful. What you cannot do is silence honest opinion you simply disagree with.
Who enforces the Consumer Review Fairness Act?
The Federal Trade Commission and state attorneys general. A violation is treated the same as an unfair or deceptive practice under the FTC Act, which can mean financial penalties and a federal court order.
Do state review laws still apply if there is a federal law?
Yes. States like California, Maryland, and Illinois passed their own anti-gag laws, and they remain in force alongside the federal law. If you serve customers in more than one state, you need to clear the clause everywhere.
What should I do instead of a gag clause?
Three things. Remove any review-restricting clause from your contracts and terms. Ask for reviews on purpose as part of how you finish a job. Respond to every review, good or bad, so the next customer sees how you handle problems.