Non-Disparagement Clauses in Consumer Contracts Banned in California

On September 9, 2014, California Governor Jerry Brown signed Assembly Bill 2365, which prevents consumer contracts for goods and services from containing provisions that require consumers to waive their rights to make disparaging comments about those goods or services. It also forbids threatening or penalizing consumers for making disparaging comments. The law takes effect on January 1, 2015, and will be enforceable by consumers and public prosecutors.

No comments yet.

Leave a Reply