Can New Law Restore Trust in Reviews?

Originally published by Christopher Elliott on LinkedIn: Can New Law Restore Trust in Reviews?

The recent passage of the Consumer Review Fairness Act of 2016 in the House of Representatives raises a new question about the reliability of online reviews for travelers.

User-generated reviews on websites such as TripAdvisor.com and Yelp.com contain information from people who claim to have stayed at a hotel, dined at a restaurant or visited an attraction. About 9 in 10 travelers consult these reviews, but only half of them trust what they read, according to surveys.

You don’t have to look far for the reasons.

Some businesses try to rig their online profiles by submitting flattering reviews of themselves, paying guests to write puff pieces about their stays or trying to muzzle those who are unhappy with the service they received. And some companies are known to place negative reviews about their competitors.

“You might think you’re always reading accurate reviews,” says brand strategist Rachel Weingarten. “But at times, you’re pretty much going in blind.”

Related: Frequently asked questions about booking travel.

The proposed law, which would prohibit companies from imposing penalties or fees against reviewers, would effectively offer these reviewers more freedom to express themselves online, particularly when they have had negative experiences.

The House bill goes to the Senate for consideration and will then be presented to the president for signature into law.

The question is: Will the new law make the process any better?

“The Consumer Review Fairness Act will essentially make it illegal for companies to prohibit their consumers from leaving honest, negative reviews or criticisms about their goods or services online,” says Joe Sullivan, an attorney with the Atlanta law firm Taylor English. Sullivan consults with companies to determine how to respond to user-generated reviews.

“It ensures that consumers have the freedom to tell the truth,” says Eric Goldman, a professor at Santa Clara University School of Law, who testified in support of the law before the Senate Commerce Committee.

Online review sites also have supported the legislation. Laurent Crenshaw, Yelp’s director of public policy, says something needed to be done about the increasing number of “gag clauses” being slipped into contracts.

The most common example is a vacation home rental owner who stipulates in the fine print of a contract that he may keep a deposit if a guest leaves an unflattering review.

“These clauses can have a chilling effect on consumers and businesses alike,” Crenshaw says. “People nationwide expect to have their legitimate speech protected.”