15 USC 45b - Consumer review protection

U.S Code last checked for updates: Nov 22, 2024

§ 45b.

Consumer review protection

(a)

Definitions

In this section:

(1)

Commission

(2)

Covered communication

(3)

Form contract

(A)

In general

Except as provided in subparagraph (B), the term “form contract” means a contract with standardized terms—

(i)

used by a person in the course of selling or leasing the person’s goods or services; and

(ii)

imposed on an individual without a meaningful opportunity for such individual to negotiate the standardized terms.

(B)

Exception

(4)

Pictorial

(b)

Invalidity of contracts that impede consumer reviews

(1)

In general

Except as provided in paragraphs (2) and (3), a provision of a form contract is void from the inception of such contract if such provision—

(A)

prohibits or restricts the ability of an individual who is a party to the form contract to engage in a covered communication;

(B)

imposes a penalty or fee against an individual who is a party to the form contract for engaging in a covered communication; or

(C)

transfers or requires an individual who is a party to the form contract to transfer to any person any intellectual property rights in review or feedback content, with the exception of a non-exclusive license to use the content, that the individual may have in any otherwise lawful covered communication about such person or the goods or services provided by such person.

(2)

Rule of construction

Nothing in paragraph (1) shall be construed to affect—

(A)

any duty of confidentiality imposed by law (including agency guidance);

(B)

any civil cause of action for defamation, libel, or slander, or any similar cause of action;

(C)

(i)

contains the personal information or likeness of another person, or is libelous, harassing, abusive, obscene, vulgar, sexually explicit, or is inappropriate with respect to race, gender, sexuality, ethnicity, or other intrinsic characteristic;

(ii)

is unrelated to the goods or services offered by or available at such party’s Internet website or webpage; or

(iii)

is clearly false or misleading; or

(D)

a party’s right to establish terms and conditions with respect to the creation of photographs or video of such party’s property when those photographs or video are created by an employee or independent contractor of a commercial entity and solely intended for commercial purposes by that entity.

(3)

Exceptions

Paragraph (1) shall not apply to the extent that a provision of a form contract prohibits disclosure or submission of, or reserves the right of a person or business that hosts online consumer reviews or comments to remove—

(A)

trade secrets or commercial or financial information obtained from a person and considered privileged or confidential;

(B)

personnel and medical files and similar information the disclosure of which would constitute a clearly unwarranted invasion of personal privacy;

(C)

records or information compiled for law enforcement purposes, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy;

(D)

content that is unlawful or otherwise meets the requirements of paragraph (2)(C); or

(E)

content that contains any computer viruses, worms, or other potentially damaging computer code, processes, programs, applications, or files.

(c)

Prohibition

(d)

Enforcement by Commission

(1)

Unfair or deceptive acts or practices

(2)

Powers of Commission

(A)

In general

(B)

Privileges and immunities

(e)

Enforcement by States

(1)

Authorization

(2)

Rights of Federal Trade Commission

(A)

Notice to Federal Trade Commission

(i)

In general

(ii)

Contents

(iii)

Exception

(B)

Intervention by Federal Trade Commission

The Commission may—

(i)

intervene in any civil action brought by the attorney general of a State under paragraph (1) against a person described in subsection (d)(1); and

(ii)

upon intervening—

(I)

be heard on all matters arising in the civil action; and

(II)

file petitions for appeal of a decision in the civil action.

(3)

Investigatory powers

(4)

Preemptive action by Federal Trade Commission

(5)

Venue; service of process

(A)

Venue

Any action brought under paragraph (1) may be brought in—

(i)

the district court of the United States that meets applicable requirements relating to venue under section 1391 of title 28; or

(ii)

another court of competent jurisdiction.

(B)

Service of process

In an action brought under paragraph (1), process may be served in any district in which the defendant—

(i)

is an inhabitant; or

(ii)

may be found.

(6)

Actions by other State officials

(A)

In general

(B)

Savings provision

(f)

Education and outreach for businesses

(g)

Relation to State causes of action

(h)

Savings provision

(i)

Effective dates

This section shall take effect on December 14, 2016, except that—

(1)

subsections (b) and (c) shall apply with respect to contracts in effect on or after the date that is 90 days after December 14, 2016; and

(2)

subsections (d) and (e) shall apply with respect to contracts in effect on or after the date that is 1 year after December 14, 2016.

(Pub. L. 114–258, § 2, Dec. 14, 2016, 130 Stat. 1355.)

cite as: 15 USC 45b