A Texas couple who gave a one-star Yelp review to a pet-sitting business is facing a $1 million lawsuit from the company who claims the review is defamatory and violates a non-disparagement clause. The couple filed a motion to dismiss in a state court claiming in part that the review was not defamatory since it was based on fact and that they were exercising their rights to free speech and to petition. (Ars Technica, June 2, 2016, by David Kravets)
Eugene Volokh writes in The Washington Post, June 2, 2016, that the gag clause in the contract should have been pointed out to the defendants. If it weren’t, it would be unenforceable under Texas law. At any rate, Volokh suggests that clients should always check for such gag clauses and should they spot one refuse the contract and file a Yelp review explaining their refusal.