2017 GNYADA Membership Directory

HOT TOPICS

ADDRESSING NEGATIVE CUSTOMER REVIEWS

The Consumer Review Fairness Act is a new federal law that went into effect on March 14, 2017, that automatically voids any“gag clause”that is included in a customer form contract (i.e. one which customers don’t have the opportunity to negotiate, such as a sales contract). The new law also prohibits businesses from offering contracts that contain gag clauses. A gag clause prevents customers from writing public review of the level of service, the satisfaction of the goods, etc. from a business such as a new car dealer. This new law protects customers’ rights to give a dealership a negative review, on an outlet such as yelp.com or the dealership’s social media page, as long as the review is not defamatory. Steps dealers can take: Dealers may encourage customers to post reviews about their positive experiences with your dealership. In addition, dealers need to pay attention to negative reviews. If you receive a negative review, this can be used to garner positive attention by responding with an apology about the experience that led to it and offering to address the issue. Even if you can’t“convert”the negative reviewer, others may be impressed with how you’ve handled the situation. Dealers should review customer form contracts to ensure that they do not contain gag clauses.

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