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 South Dakota, as in all states, the Consumer Review Fairness Act (CRFA) applies to protect consumers' rights to post honest reviews about a business's products, services, or conduct. The CRFA, a federal law, makes it illegal for companies to use contracts that bar or penalize customers for posting negative reviews or honest opinions about the business on any platform, including social media. The Federal Trade Commission (FTC) is responsible for enforcing the CRFA. Businesses in South Dakota must ensure that their contracts and practices do not include provisions that violate the CRFA, such as clauses that impose penalties on consumers for their reviews or attempt to transfer intellectual property rights of the review to the business. Violation of the CRFA can lead to legal action by the FTC, and businesses may be required to remove such clauses and could face financial penalties.