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Update: FTC Complaint Against Weight-Loss Marketer For Allegedly Using "Gag Clauses"

Roca Labs Inc. logo After the U.S. Federal Trade Commission (FTC) filed a complaint against it for allegedly using gag clauses to silence negative online reviews by customers, Roca Labs, the weight-loss marketer, has responded. MediaPost's Daily Online Examiner reported:

"The company, which sells weight-loss products, argues in court papers filed earlier this month that the FTC lacks the power "to dictate the terms of private contracts between private parties." The company adds: "The FTC’s intention to ban all manner of anti disparagement clauses is overkill and appears to be a knee-jerk reaction to a particular practice of Roca Labs. ...The regulation of public comment through on-line reviews is a complicated and multi-faceted problem that must balance the rights of consumers and businesses in the ever-changing landscape of internet commerce." Roca filed its papers in response to the FTC's request for an injunction..."

Last Thursday, U.S. District Court Judge Mary Scriven in Florida issued an order granting the FTC's preliminary injunction to stop Roca labs from silencing customers' online reviews. Yelp and other review sites sided with the FTC in a friend-of-court brief.Some reviewers posted information about the FTC complaint on the Roca Labs page within the Yelp site.

For review sites to be trustworthy, they must include positive, negative, and neutral reviews of products and services. What are your opinions of gag clauses?

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