CORRECTED: Calif. Gov. Signs 'Yelp Bill' To Protect Customer Reviews

Law360, Los Angeles (September 9, 2014, 10:50 PM EDT) -- California Gov. Jerry Brown recently signed into law the so-called Yelp bill, which would prohibit companies from stifling consumer reviews, after the state Legislature approved the measure last month.

The "Yelp bill," named because it targets companies looking to avoid negative reviews on the popular review site or other online forums such as Facebook, was crafted in response to a Utah couple who sued a Web merchant after allegedly being slapped with a $3,500 fee for violating a nondisparagement clause.

The state Senate approved A.B. 2365 — which establishes civil penalties of $2,500 for a first violation, $5,000 for each subsequent...

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