The Consumer Review Fairness Act (CRFA) protects consumers’ ability to share their honest opinions about a business’s products, services, or conduct, in any forum, including social media. For example, businesses must comply with the CRFA when attempting to limit or respond to consumer reviews. The Federal Trade Commission (FTC) enforces the CRFA, and believes contracts that prohibit honest reviews or threaten legal action over them harm consumers who rely on reviews when making their purchase decisions—and harm businesses that work hard to earn positive reviews.
In Arkansas, as in all states, the Consumer Review Fairness Act (CRFA) applies to protect consumers' rights to post honest reviews about businesses' products, services, or conduct. The CRFA, a federal law, makes it illegal for companies to use contracts that impose penalties on customers for posting negative reviews or sharing their honest experiences online, including on social media platforms. The Federal Trade Commission (FTC) is responsible for enforcing the CRFA. Businesses in Arkansas must ensure that their practices do not include provisions that violate the CRFA, such as those that seek to suppress, penalize, or transfer intellectual property rights of the content of the reviews to the business. Violating the CRFA can lead to legal action by the FTC, including fines and orders to cease and desist such practices. Arkansas businesses must be mindful of this when drafting contracts and when responding to consumer reviews to avoid infringing on consumers' protected rights under the CRFA.