CRF Blog

Instead of prohibiting bad reviews, firms should improve service

by Bill Hayes

In Instead of prohibiting bad reviews, firms should improve service, Los Angeles Times business columnist David Lazarus looks at the practice some companies have of prohibiting its customers from posting negative reviews online about its service or products.

Some companies are trying to head off bad comments and reviews. They’re placing provisions in their contracts that impose hefty penalties on customers if they say anything negative about them online.

Arguing that this is unfair, a pair of congressmen from California introduced legislation last week that would put a stop to so-called non-disparagement clauses nationwide.

California, for its part, has already lowered the boom on such opinion-crushing contracts. [more]