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 New York, as in all states, the Consumer Review Fairness Act (CRFA) applies, protecting consumers' rights to post honest reviews and opinions about a business's products, services, or conduct on any platform, including social media. The CRFA makes it illegal for companies to use contracts that impose penalties on customers for posting negative reviews or that restrict the ability to post such reviews. The Federal Trade Commission (FTC) is responsible for enforcing the CRFA. Businesses in New York must ensure that their practices do not include provisions that violate the CRFA, such as gag clauses in contracts that attempt to control or suppress consumer feedback. Violation of the CRFA can lead to legal action by the FTC, and businesses may be required to remove such clauses and could face fines.