BBB Business Tip: How to handle negative reviews

What is the problem with non-disparagement clauses?

In hopes of preventing negative reviews, some businesses include illegal non-disparagement clauses in their contracts or terms and conditions, prohibiting customers from public criticism. Businesses may even demand financial compensation if a customer fails to comply.

In 2016, the Consumer Review Fairness Act (CRFA) was passed in response to a rising number of businesses acting against honest customer criticism. Non-disparagement clauses violate the CRFA, which “protects people’s ability to share honest opinions about a business’s products, services, or conduct, in any forum, including social media.” In addition, businesses cannot impose fines or otherwise punish customers who engage in public criticism.

Before the act, some businesses sought harsh punishments against any review that painted the business as less than perfect. In one example, a vacation rental company “mandated in its contract that any vacationer who posted a review giving the property less than a “5 star or absolute best rating” immediately owed the company at least $25,000.” The company was forced to answer to the FTC for threatening customers with fines.

This illegal practice is deceptive on its own since it bars customers from providing their honest opinions. Equally deceitful is that many businesses hide non-disparagement clauses where customers are unlikely to see them, buried in the fine print of a contract or on web pages that people rarely visit.

Because non-disparagement clauses are illegal, dishonest, and harmful to consumers, the practice is also directly opposed to BBB’s Standards for Trust. That means Accredited Businesses found prohibiting honest reviews could be at risk for losing their accreditation. Similarly, non-accredited businesses could be disqualified from consideration for accreditation. Read more of BBB's remarks on reviews and nondisparagement clauses.

What is the importance of honest criticism?

Open and honest communication is necessary for an ethical marketplace where businesses and customers benefit from genuine customer reviews. When customers have access to honest reviews, they’re able to make informed decisions about where to spend their money, and businesses have an opportunity to address their shortcomings, improve their reputation and rebuild trust.

How can you handle negative reviews of your business?

Respond promptly to negative reviews. Prospective customers consider the newest reviews to be the most relevant and accurate. They could interpret a lack of response as a business's lack of interest in a customer’s concerns. Consistently monitor reviews on various websites to respond to negative comments quickly. (Note: it is also important to respond to positive reviews, as that shows appreciation and could increase customer loyalty).
Be respectful when responding to negative comments. You should avoid making denials or excuses, even if you have a different perspective. Acknowledge their concerns, apologize for the mistake, and illustrate that you value customer feedback as an opportunity to improve. If applicable, provide a resolution or a way to address the issue.
Be sure to claim your business profiles. Claim your profiles on as many platforms as possible. This will allow you to respond to comments and reviews. On some platforms, managing your profile includes being able to appeal negative reviews.
Tell the customer how to contact you. Responding online is important, but it can feel impersonal for the customer. When you talk to a customer one on one, they’ll know that you genuinely listened to their concerns. This also gives you a chance to reach a resolution that satisfies you and the customer.
Businesses can remove or prohibit reviews that are considered abusive, vulgar, or threatening. The CRFA protects a customer’s right to leave honest reviews but does not protect reviews that could be genuinely harmful. For example, it does not permit reviews that reveal sensitive information about a business or its employees, nor does it permit inappropriate language like racial epithets.
Encourage customers to leave reviews on BBB.org. At BBB, customers can post feedback about marketplace experiences with businesses, brands, and charities. Just like our complaints, reviews are vetted by BBB team members and sent to the business before they are published online.
Give it time. Customers place emphasis on recent reviews, meaning bad reviews will become less important as time passes. According to the BrightLocal survey, more than 80 percent of people thought reviews over three months were irrelevant. Time is even more of the essence with younger people. About 60 percent of 18 to 34-year-olds only consider reviews written in the past two weeks. Ensure your reviews are recent by encouraging clients to leave reviews.