SEC. 2. PROTECTING CONSUMER SPEECH. 
(a) PROHIBITION.—A provision of a form contract is 
void from the inception of such contract if such provi-
sion— 
(1) prohibits or restricts the ability of a person 
who is a party to the form contract to engage in a 
covered communication; 
(2) imposes a penalty or fee against a person 
who is a party to the form contract for engaging in 
a covered communication; or 
(3) transfers or requires the individual to trans-
fer to any person or business any intellectual prop-
erty rights that the individual may have in any oth-
erwise lawful covered communication about the per-
son or the goods or services provided by the person 
or business; 
(b) RULE
OF CONSTRUCTION.—Nothing in sub-
section (a) shall be construed to affect— 
(1) any duty of confidentiality imposed by law 
(including agency guidance); or 
(2) any civil action for defamation, libel, or 
slander, or any similar cause of action. 
(c) EXCEPTIONS.—Subsection (a) shall not apply to 
the extent that a provision of a form contract prohibits 
disclosure of the following: 
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(1) Trade secrets or commercial or financial in-
formation obtained from a person and considered 
privileged or confidential. 
(2) Personnel and medical files and similar files 
the disclosure of which would constitute a clearly un-
warranted invasion of personal privacy. 
(3) Records or information compiled for law en-
forcement purposes, the disclosure of which would 
constitute a clearly unwarranted invasion of personal 
privacy. 
(d) UNLAWFUL CONDUCT.—It shall be unlawful for 
a business to offer or enter into a form contract containing 
a provision described as void in subsection (a). 
(e) PENALTY.—The Attorney General shall bring an 
action against any business who violates subsection (d) for 
a civil penalty of not more than $16,000 for each day that 
the business so requires the use of such a contract by a 
distinct person. 
(f) STATE ENFORCEMENT.—The attorney general of 
a State may file an action to enforce subsection (d) seek-
ing appropriate relief. In any case in which the attorney 
general of a State has reason to believe that an interest 
of the residents of that State has been or is threatened 
or adversely affected by the engagement of any person in 
a practice that violates any regulation of the Commission 
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prescribed under this section, the State, as parens patriae, 
may bring a civil action on behalf of the residents of the 
State in a district court of the United States of appro-
priate jurisdiction to seek appropriate relief. 
(g) DEFINITIONS.— 
(1) The term ‘‘person’’ means a natural person. 
(2) The term ‘‘business’’ means a legal entity 
organized to accomplish a business purpose, includ-
ing either for-profit or not-for-profit. 
(3) The term ‘‘form contract’’ means a stand-
ardized contract used by a business and imposed on 
a party without a meaningful opportunity for said 
party to negotiate the standardized terms, but does 
not include a contract establishing an employer-em-
ployee or independent contractor relationship. 
(4) The term ‘‘covered communication’’ means 
a person’s written, verbal, or pictorial review, per-
formance assessment of, or other similar analysis of, 
the products, services, or conduct of a business or 
person which is a party to the form contract. 
(5) The term ‘‘written’’ includes words provided 
by electronic means. 
(6) The term ‘‘verbal’’ includes speech provided 
by electronic means. 
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(7) The term ‘‘pictorial’’ includes pictures, pho-
tographs, and video provided by electronic means. 
(h) EFFECTIVE DATES.— 
(1) Subsections (a), (b), (c), (d), and (g) shall 
apply to any contracts in effect on or after date of 
enactment. 
(2) Subsections (e) and (f) shall apply to any 
contracts in effect on or after one year after date of 
enactment. 
SEC. 3. RELATION TO STATE CAUSES OF ACTION. 
Nothing in this Act shall be construed to affect any 
cause of action brought by a person that exists or may 
exist under State law. 
Æ 
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