SACRAMENTO — State legislation to limit the use of nondisparagement clauses in consumer contracts cleared its first policy committee Tuesday.
Assembly Bill 2365 would prohibit businesses from contractually muzzling customers who may want to gripe online about a product or service unless they “knowingly, voluntarily and intelligently” waive the right. The so-called Yelp bill would subject violators to civil penalties ranging from $2,500 to $10,000.
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