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CFPB issues policy guidance on ‘gag’ clauses and fake review fraud
The CFPB Tuesday issued policy guidance regarding illegal practices concerning consumer reviews. According to the guidance, the CFPB seeks to ensure that “customers can write reviews, particularly ones posted online, about financial products and services that accurately reflect their opinions and experiences.”
The CFPB’s guidance includes a list of specific business practices that are unlawful under the Consumer Financial Protection Act, including:
- contractual “gag” clauses – or attempting to silence consumers from posting online reviews;
- fake reviews; and
- review suppression or manipulation.
Fake reviews or “gag” clauses used by financial institutions in some cases could be determined as unfair or deceptive acts under the unfair, deceptive, or abusive acts or practices (UDAAP).
“In America, no corporation should be able to silence a customer from posting an honest review online,” stated CFPB Director Rohit Chopra. “Corporate disinformation campaigns that suppress legitimate reviews or manufacture fake reviews are not only a threat to free speech and fair competition, they are also illegal.”
Of note, the CFPB’s guidance is also related to the Federal Trade Commission’s (FTC) efforts to mitigate fake reviews and related fraud across the digital economy.
NAFCU will continue to work with the CFPB to ensure that consumers are protected, and the credit union industry voice is heard.