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Perspective

Sep. 17, 2014

New law keeps businesses from gagging their customers

Recently signed AB 2365 enacts a first-in-the-nation statute to stop businesses from contractually gagging customers by including nondisparagement clauses in consumer contracts. By Mark Goldowitz and Evan Mascagni


By Mark Goldowitz and Evan Mascagni


Consumers are increasingly turning to review websites like Yelp to read the opinions and experiences of others with businesses, and to share their own opinions and experiences with others. Laurent Crenshaw, Yelp's head of government affairs, recently said: "From time to time we hear about businesses that are so afraid of what their customers might say about them that they sneak clauses into consumer contracts designed ...

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