CFPB Issues Policy Guidance on Potentially Illegal Practices Related to Consumer Reviews  

The CFPB recently issued policy guidance regarding unfair and deceptive acts related to consumer reviews.  The guidance acts as a reminder to regulated entities of the Consumer Financial Protection Act’s (CFPA) requirements and explains how the bureau intends to exercise its enforcement authority.

Businesses are prohibited under the Consumer Review Fairness Act (CRFA) from using form contracts to attempt to restrict or penalize individuals for leaving honest reviews.  This also prohibits companies from removing negative reviews, unless the review is abusive, contains clearly false or misleading information, is unrelated to the company’s products or services, or contains confidential information.  Additionally, the CFPA prohibits service providers or other covered persons from engaging in an “unfair, deceptive, or abusive act or practice” that is “in connection with any transaction with a consumer for a consumer financial product or service, or the offering of a consumer financial product or service.” 

The CFPB noted that service providers who engage in deceptive or restrictive measures that are unenforceable under the CRFA, or unfairly deprive consumers of information regarding consumer reviews are liable under the CFPA.