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New Law for Consumers Rights

Consumers cannot be forced to waive right to make critical or disparaging statements about a business. This law prohibits a contract or proposed contract for the sale or lease of consumer goods or services from including a provision waiving the consumer’s right to make any statement regarding the seller or lesser or its employees or agents, or concerning the goods or services. It imposes civil penalties upon any person who violates the provisions of the law, of $2,500 for the initial violation and $5,000 for each subsequent violation, as well as an additional penalty of $10,000 if the violation was willful, intentional, or reckless in actions that may be brought by the consumer, the Attorney General, or a district attorney or city attorney. It does not prohibit or limit a person or business that hosts online consumer reviews or comments from removing a statement that is otherwise lawful to remove. Assembly Bill 2365 codified as Civil Code 1670.8. Effective January 1, 2015.