Legislature Passes “Right-To-Yelp” Bill From Assemblyman Dinowitz

As the availability of consumer-submitted information about products and services has grown, some businesses have begun including anti-disparagement clauses in their contracts

Albany, NY – A consumer’s right to complain shall not be infringed, at least in New York State, pending newly passed legislation from Assemblyman Jeffrey Dinowitz. With the advent of consumer-submitted online reviews using platforms such as Yelp, most businesses have accepted this new dynamic. However, some have instead chosen to include contract provisions that limit or prohibit consumers from sharing opinions about their satisfaction with the business. Under the Dinowitz bill, consumers would retain their right to make any statement regarding the business or their goods and services.

This consumer protection has previously been established by a New York Court (People v. Network Assoc., INC) but this legislation codifies that protection into statute and also establishes a private right of action for New York state residents as well as the New York State Attorney General. The legislation previously passed the New York State Assembly on June 13 with 145 votes in favor and only one opposed, and was similarly passed in the State Senate on June 17 with YYY votes in favor. The bill now awaits delivery to the Governor for his signature.

Assemblyman Jeffrey Dinowitz (D - Bronx) said: “The primary basis for our consumer marketplace is peer-to-peer recommendations on which businesses should be patronized and which should be avoided. It is absolutely ridiculous that a business would proactively want to prohibit these reviews, which can only seem to be explained by an intent to provide shoddy service. This legislation keeps people’s opinions out in the open, instead of hiding them behind legalese-filled contracts that most people don’t have the patience to read anyway.”

State Senator Liz Krueger (D-Manhattan) said: “Our markets function best when consumers have as much information as possible. It should be obvious that muzzling customer feedback is not a great policy for any business, and consumers should not have their voices gagged by contractual fine print. This bill will protect consumers’ right to share their opinions, and maintain an open and transparent marketplace.”