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 Hawaii, 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 otherwise sharing their honest experiences in any forum, including social media. This means that businesses operating in Hawaii must ensure that their contracts and practices do not include provisions that restrict their customers' ability to communicate their truthful opinions about their experiences. The Federal Trade Commission (FTC) is responsible for enforcing the CRFA, and it aims to prevent businesses from using unfair contract terms that would discourage customers from posting reviews, which are valuable to other consumers and to businesses that benefit from positive word-of-mouth. Violations of the CRFA can lead to legal action by the FTC against businesses that attempt to suppress honest consumer feedback.