California is looking to support customer opinion with a new law prohibiting online stores from fining people who post negative reviews of their products and services.
Gov. Jerry Brown signed the bill, AB 2365, into law on Tuesday that bans online retailers from having "non-disparagement clauses" from contracts that make customers refrain from expression a negative opinion about the company's services, according to CNET. The signing takes places five months after the bill was proposed.
Assemblyman John A. Perez (D-Los Angeles), the sponsor for the bill, said the rule was inspired by a situation in which an online store demanded that a couple in Utah pay $3,500 for posting a negative review about their service, which had a harmful effect on their credit rating.
"Most of us assume we have just as many rights after making a purchase as we did before," Perez said during the bill's introduction in April. "If a merchant thinks our First Amendment free speech rights need to be curtailed, they should say so, up front, and in plain language."
A $2,500 fine would be issued to any business that doesn't adhere to the new law, CNET reported. Businesses will receive a $5,000 for each violation afterwards, as well as an additional fine of $10,000 for violations that are deemed intentional, willful or reckless.
States in the U.S. have been fighting the filing of strategic lawsuits against participation (SLAPP) that fine defendants who leave negative comments about businesses on review sites and blogs.
While businesses argue that they use non-disparagement clauses to keep their reputation safe from defamation, critics argue that the lawsuits are designed to prevent public criticism, CNET reported.
So far, 28 states have issued statutes against SLAPPs.
