Bill Restricts Consumer Reviews, Testimonials

State lawmakers are considering legislation restricting certain reviews of businesses, consumer goods, and consumer services.

Introduced by Rep. Josh Elliott (D-Hamden), HB 5560 bans businesses from providing compensation or incentives in exchange for “writing a consumer review that expresses a particular sentiment, whether positive or negative, regarding the business, consumer good or consumer service that is the subject of the consumer review.”

The bill also prohibits communications to consumers if it “materially misrepresents, expressly or implicitly” facts or circumstances about a reviewer or person giving a testimonial.

Employees and family members of employees are also blocked from submitting reviews or testimonials “that do not clearly and conspicuously disclose their material relationship to the business.”

Businesses could be found liable of unfair trade practices if they knowingly, or reasonably should have known, that a review or testimonial was misleading or fabricated under the standards set forth in the bill. 

Concerns

CBIA’s Chris Davis told the General Law Committee that CBIA is supportive of the bill’s intent “to prohibit misleading and deceptive reviews and testimonials.”

“Without question, there are bad actors that submit and promote, sometimes in a systematic way, inaccurate and misleading reviews that can harm a business’ reputation,” he said.

“We do, however, have concerns that the way the bill is currently drafted could curb protected commercial speech and restrict important marketing and advertising tools like celebrity endorsements and solicited testimonials.

“We are also concerned about the reasonable knowledge standard created by the bill and what standards will be used to determine if a business reasonably could have known that a reviewer did not actually use a good or service or that they were in some way misleading consumers.”

“We have concerns that bill could curb protected commercial speech and restrict important marketing and advertising tools.”

CBIA’s Chris Davis

The Connecticut Hospital Association noted that HB 5560 “prohibits a business from deleting or curating reviews or testimonials unless the reason for a deletion met the strict legislative standards found in lines 160-182.”

“Under those mandates, it appears that a business could not delete a post that said a competitor’s business was better,” CHA testified.

“They’d have to leave that post on their own website or social media site unless the post also, for example, used profanity.”

Concerns were also raised by several Connecticut-based social media content creators that the restrictions could stifle the increasing use of social media influencers by local businesses. 

CBIA encourages the committee to proceed with caution when considering HB 5560, as the unintended consequences of limiting potentially protected commercial speech and restricting important marketing and advertising tools could negatively impact businesses and consumers. 

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For more information, contact CBIA’s Chris Davis (860.244.1931).