California has just enacted a law that prohibits ‘non-disparagement clauses’. These are clauses in consumer contracts that prohibit the consumer from criticising the product or services provided under the contract.
Specifically, the statute says this: “a contract or proposed contract for the sale or lease of consumer goods or services may not include a provision waiving the consumer’s right to make any statement regarding the seller or lessor or its employees or agents, or concerning the goods or services.”
Is there any need for such a provision in Canadian law (federal or provincial)? Are non-disparagement clauses ever seen here? Would a court enforce such a clause under our current law? Should such clauses be enforceable?
Or are Canadian online review sites too tame for merchants and service providers to worry about?