Information on the Consumer Review Fairness Act
Consumer Review Fairness Act
Tags: Consumer Protection
Mission Consumer Protection
Law 15 U.S.C. § 45b
https://www.ftc.gov/legal-library/browse/statutes/consumer-review-fairness-act
"The Act generally makes provisions of form contracts between sellers and individual consumers void from inception if the provisions: (1) prohibit or restrict individuals from reviewing sellers’ goods, services, or conduct; (2) impose penalties or fees on individuals for such reviews; or (3) require individuals to transfer intellectual property rights in such reviews. The Act also bars sellers from offering form contracts with such provisions. The Act contains certain exceptions, including for contract provisions that bar the submission of confidential, private, or unlawful information."
"A form contract, also known as a standard form contract or adhesion contract, is a pre-drafted legal agreement with standardized terms and conditions that one party presents to another on a "take it or leave it" basis.”
"Form contracts are often used for routine transactions, such as gym membership applications, electricity service terms, and software license user agreements. They are designed to save time and resources by reducing the need for negotiation and providing a consistent framework that addresses common issues, liabilities, and regulatory requirements.”
Form contracts are different from heavily negotiated agreements, such as business sale agreements or complex commercial leases.
Some say that form contracts can lead to the exploitation of weaker parties, and there is no rule to prevent this. Others argue that firms may be willing to offer better terms if a small percentage of buyers actively read the contracts and influence a more significant number of people.
Based on the definition of a Form Contract, on the surface, they appear to be different than a Settlement Agreement. However, could it be argued that if the vast majority of Settlement Agreements are essentially boilerplate language, they are actually Form Contracts and subject to the Consumer Review Fairness Act? I bet there is somebody out there trying to prove that exact point. Also, are Settlement Agreements truly contracts agreed to freely or might it be argued that they are actually agreed to under "duress", and therefore not enforceable. Again, I wouldn't be surprised if somebody out there is trying to prove that point as well.
An example might be if you have an RV that is no longer useable, it's no longer safe to tow, it's your full-time residence and you feel you have no choice but to agree to the Settlement Agreement. However, the bar to meet duress in contract law seems very high. But, I wouldn't put it past a great attorney to give it a try.
"In contract law, duress is when one party threatens another to force them into a contract. A contract made under duress is voidable or void, depending on the type of duress used:
Physical duress: A threat of immediate harm to a person or their family. This type of duress makes a contract void.
Economic duress: A threat to cause severe economic harm to another party.
Psychological duress: The use of psychological pressure.
Improper threats: A type of duress that makes a contract voidable.
To qualify as a defense, duress must meet the following requirements:
The threat must be of serious bodily harm or death.
The threatened harm must be greater than the harm caused by the crime.
The threat must be immediate and inescapable.
The defendant must have become involved in the situation through no fault of their own.
To prove duress, you can:
Show that you agreed to the contract because of a threat of illegitimate pressure.
Show that you would not have signed the contract if the threat did not exist.
Provide evidence of the pressure or coercion, such as a threatening email or witness statement.
Show that the contract was against your interests."
