H. R. 5111 
One Hundred Fourteenth Congress 
of the 
United States of America 
AT THE SECOND SESSION 
Begun and held at the City of Washington on Monday, 
the fourth day of January, two thousand and sixteen 
An Act 
To prohibit the use of certain clauses in form contracts that restrict the ability 
of a consumer to communicate regarding the goods or services offered in interstate 
commerce that were the subject of the contract, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Consumer Review Fairness 
Act of 2016’’. 
SEC. 2. CONSUMER REVIEW PROTECTION. 
(a) DEFINITIONS.—In this section: 
(1) COMMISSION.—The term ‘‘Commission’’ means the Fed-
eral Trade Commission. 
(2) COVERED COMMUNICATION.—The term ‘‘covered commu-
nication’’ means a written, oral, or pictorial review, performance 
assessment of, or other similar analysis of, including by elec-
tronic means, the goods, services, or conduct of a person by 
an individual who is party to a form contract with respect 
to which such person is also a party. 
(3) FORM CONTRACT.— 
(A) IN GENERAL.—Except as provided in subparagraph 
(B), the term ‘‘form contract’’ means a contract with 
standardized terms— 
(i) used by a person in the course of selling or 
leasing the person’s goods or services; and 
(ii) imposed on an individual without a meaningful 
opportunity for such individual to negotiate the 
standardized terms. 
(B) EXCEPTION.—The term ‘‘form contract’’ does not 
include an employer-employee or independent contractor 
contract. 
(4) PICTORIAL.—The term ‘‘pictorial’’ includes pictures, 
photographs, video, illustrations, and symbols. 
(b) INVALIDITY
OF
CONTRACTS
THAT
IMPEDE
CONSUMER 
REVIEWS.— 
(1) IN
GENERAL.—Except as provided in paragraphs (2) 
and (3), a provision of a form contract is void from the inception 
of such contract if such provision— 
(A) prohibits or restricts the ability of an individual 
who is a party to the form contract to engage in a covered 
communication;
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(B) imposes a penalty or fee against an individual 
who is a party to the form contract for engaging in a 
covered communication; or 
(C) transfers or requires an individual who is a party 
to the form contract to transfer to any person any intellec-
tual property rights in review or feedback content, with 
the exception of a non-exclusive license to use the content, 
that the individual may have in any otherwise lawful cov-
ered communication about such person or the goods or 
services provided by such person. 
(2) RULE
OF
CONSTRUCTION.—Nothing in paragraph (1) 
shall be construed to affect— 
(A) any duty of confidentiality imposed by law 
(including agency guidance); 
(B) any civil cause of action for defamation, libel, or 
slander, or any similar cause of action; 
(C) any party’s right to remove or refuse to display 
publicly on an Internet website or webpage owned, oper-
ated, or otherwise controlled by such party any content 
of a covered communication that— 
(i) contains the personal information or likeness 
of another person, or is libelous, harassing, abusive, 
obscene, vulgar, sexually explicit, or is inappropriate 
with respect to race, gender, sexuality, ethnicity, or 
other intrinsic characteristic; 
(ii) is unrelated to the goods or services offered 
by or available at such party’s Internet website or 
webpage; or 
(iii) is clearly false or misleading; or 
(D) a party’s right to establish terms and conditions 
with respect to the creation of photographs or video of 
such party’s property when those photographs or video 
are created by an employee or independent contractor of 
a commercial entity and solely intended for commercial 
purposes by that entity. 
(3) EXCEPTIONS.—Paragraph (1) shall not apply to the 
extent that a provision of a form contract prohibits disclosure 
or submission of, or reserves the right of a person or business 
that hosts online consumer reviews or comments to remove— 
(A) trade secrets or commercial or financial information 
obtained from a person and considered privileged or con-
fidential; 
(B) personnel and medical files and similar information 
the disclosure of which would constitute a clearly 
unwarranted invasion of personal privacy; 
(C) records or information compiled for law enforce-
ment purposes, the disclosure of which would constitute 
a clearly unwarranted invasion of personal privacy; 
(D) content that is unlawful or otherwise meets the 
requirements of paragraph (2)(C); or 
(E) content that contains any computer viruses, worms, 
or other potentially damaging computer code, processes, 
programs, applications, or files. 
(c) PROHIBITION.—It shall be unlawful for a person to offer 
a form contract containing a provision described as void in sub-
section (b). 
(d) ENFORCEMENT BY COMMISSION.—
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(1) UNFAIR OR DECEPTIVE ACTS OR PRACTICES.—A violation 
of subsection (c) by a person with respect to which the Commis-
sion is empowered under section 5(a)(2) of the Federal Trade 
Commission Act (15 U.S.C. 45(a)(2)) shall be treated as a viola-
tion of a rule defining an unfair or deceptive act or practice 
prescribed under section 18(a)(1)(B) of the Federal Trade 
Commission Act (15 U.S.C. 57a(a)(1)(B)). 
(2) POWERS OF COMMISSION.— 
(A) IN GENERAL.—The Commission shall enforce this 
section in the same manner, by the same means, and 
with the same jurisdiction, powers, and duties as though 
all applicable terms and provisions of the Federal Trade 
Commission Act (15 U.S.C. 41 et seq.) were incorporated 
into and made a part of this Act. 
(B) PRIVILEGES AND IMMUNITIES.—Any person who vio-
lates this section shall be subject to the penalties and 
entitled to the privileges and immunities provided in the 
Federal Trade Commission Act (15 U.S.C. 41 et seq.). 
(e) ENFORCEMENT BY STATES.— 
(1) AUTHORIZATION.—Subject to paragraph (2), in any case 
in which the attorney general of a State has reason to believe 
that an interest of the residents of the State has been or 
is threatened or adversely affected by the engagement of any 
person subject to subsection (c) in a practice that violates 
such subsection, the attorney general of the State may, as 
parens patriae, bring a civil action on behalf of the residents 
of the State in an appropriate district court of the United 
States to obtain appropriate relief. 
(2) RIGHTS OF FEDERAL TRADE COMMISSION.— 
(A) NOTICE TO FEDERAL TRADE COMMISSION.— 
(i) IN GENERAL.—Except as provided in clause (iii), 
the attorney general of a State shall notify the Commis-
sion in writing that the attorney general intends to 
bring a civil action under paragraph (1) before initi-
ating the civil action against a person described in 
subsection (d)(1). 
(ii) CONTENTS.—The notification required by clause 
(i) with respect to a civil action shall include a copy 
of the complaint to be filed to initiate the civil action. 
(iii) EXCEPTION.—If it is not feasible for the 
attorney general of a State to provide the notification 
required by clause (i) before initiating a civil action 
under paragraph (1), the attorney general shall notify 
the Commission immediately upon instituting the civil 
action. 
(B) INTERVENTION BY FEDERAL TRADE COMMISSION.— 
The Commission may— 
(i) intervene in any civil action brought by the 
attorney general of a State under paragraph (1) against 
a person described in subsection (d)(1); and 
(ii) upon intervening— 
(I) be heard on all matters arising in the civil 
action; and 
(II) file petitions for appeal of a decision in 
the civil action. 
(3) INVESTIGATORY
POWERS.—Nothing in this subsection 
may be construed to prevent the attorney general of a State
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from exercising the powers conferred on the attorney general 
by the laws of the State to conduct investigations, to administer 
oaths or affirmations, or to compel the attendance of witnesses 
or the production of documentary or other evidence. 
(4) PREEMPTIVE ACTION BY FEDERAL TRADE COMMISSION.— 
If the Federal Trade Commission institutes a civil action or 
an administrative action with respect to a violation of sub-
section (c), the attorney general of a State may not, during 
the pendency of such action, bring a civil action under para-
graph (1) against any defendant named in the complaint of 
the Commission for the violation with respect to which the 
Commission instituted such action. 
(5) VENUE; SERVICE OF PROCESS.— 
(A) VENUE.—Any action brought under paragraph (1) 
may be brought in— 
(i) the district court of the United States that 
meets applicable requirements relating to venue under 
section 1391 of title 28, United States Code; or 
(ii) another court of competent jurisdiction. 
(B) SERVICE OF PROCESS.—In an action brought under 
paragraph (1), process may be served in any district in 
which the defendant— 
(i) is an inhabitant; or 
(ii) may be found. 
(6) ACTIONS BY OTHER STATE OFFICIALS.— 
(A) IN GENERAL.—In addition to civil actions brought 
by attorneys general under paragraph (1), any other con-
sumer protection officer of a State who is authorized by 
the State to do so may bring a civil action under paragraph 
(1), subject to the same requirements and limitations that 
apply under this subsection to civil actions brought by 
attorneys general. 
(B) SAVINGS
PROVISION.—Nothing in this subsection 
may be construed to prohibit an authorized official of a 
State from initiating or continuing any proceeding in a 
court of the State for a violation of any civil or criminal 
law of the State. 
(f) EDUCATION AND OUTREACH FOR BUSINESSES.—Not later than 
60 days after the date of the enactment of this Act, the Commission 
shall commence conducting education and outreach that provides 
businesses with non-binding best practices for compliance with this 
Act. 
(g) RELATION TO STATE CAUSES OF ACTION.—Nothing in this 
section shall be construed to affect any cause of action brought 
by a person that exists or may exist under State law. 
(h) SAVINGS PROVISION.—Nothing in this section shall be con-
strued to limit, impair, or supersede the operation of the Federal 
Trade Commission Act or any other provision of Federal law. 
(i) EFFECTIVE DATES.—This section shall take effect on the 
date of the enactment of this Act, except that— 
(1) subsections (b) and (c) shall apply with respect to con-
tracts in effect on or after the date that is 90 days after 
the date of the enactment of this Act; and
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(2) subsections (d) and (e) shall apply with respect to con-
tracts in effect on or after the date that is 1 year after the 
date of the enactment of this Act. 
Speaker of the House of Representatives. 
Vice President of the United States and
President of the Senate.