California Bans Non-Disparagement Contract Clauses that

Prohibit Consumers from Criticizing Businesses in the Sale or Lease of Goods or Services

In a preemptive strike to prevent litigation against consumers for their free speech rights, California passed a model consumer ban against “gag”provisions in contracts that limit consumers from criticizing a business (its employees or agents) concerning the goods or services.  

Here is the text of the bill and here are the legislative floor analyses of it.  The law provides for financial penalities and that the provision is not waivable. See here for Professor Nancy Kim’s synopsis on the Contracts Law Prof Blog.

Other states should take note!