What You Need To Know About CRFA & Brand Reputation

On December 14, 2016, Obama signed the Consumer Review Fairness Act, or CRFA. Some bitter brands may think of it as protection for those who seek to tarnish their reputation online, but they’re really missing the point. The CRFA makes it illegal to punish those who leave negative reviews, especially if they’re prohibited in a contract.

The law was signed into effect in the wake of several high-profile incidents involving contracts that stated the customer could not leave a negative review, though the vendor did not deliver products or services to satisfaction. The two most notable were wedding venue in New York, which attempted to charge newlyweds $500 for each negative review, and a restaurant in South Carolina that required parties of five or more to sign a contract that stated they would be held liable for negative reviews.

Most brands have never had outright contracts stating that they would hold clients or customers liable for publishing their opinions, but some had tucked this clause into their extensive Terms & Conditions forms, just in case of an especially bad hit. Given that these documents are almost never actually read, it was a particularly nasty way to go about it, even if legal at the time.

While not every brand had one of these contracts or clauses in place, those that did are in for a harsh awakening, and will have to learn how to adapt their reputation management to the new legislation.

If your brand did rely on a clause or conditions sheet for brand reputation, here are a few tips on how to get started reforming your reputation management protocol:

Learn How To Respond To Negative Reviews

The first step is not only for you personally to learn how to correctly respond to negative reviews, but also for your team to be trained – the more, the better. As they’ve previously been shielded from this kind of criticism, it’s important that you avoid situations in which an upset employee makes an already bad situation even worse by overreacting to a negative review. Train every member in how to respond to a negative customer, both online and in person, no matter how unfounded they feel the complaint may be.

Lay out a hierarchy of employees who are designated to respond – ideally, a dedicated social media expert who does not come into direct contact with customers, as they’ll lack any emotional connection to incidents. If you’re a small brand, this is likely impossible; in this case, designate your most level-headed employee to handle complaints. If you have a hot headed employee – which is not unusual, and may be an asset for their tasks – make sure they’re last in line for this task.

Reorganize Your Customer Experience

Now that your employees are trained and there’s a hierarchy, you feel prepared to deal with negative reviews. However, you’re not done – it’s time for some internal reflection.

Why did you and your management team feel the need to create a clause or threat directed at customers critiquing or complaining about your brand? What is it about your business model that made you uncomfortable with the idea? Is there an aspect of your customer experience that you know is weak or unpleasant? What can you do to make your customer experience better, so that a single negative review does not bring down your entire brand reputation?

Take a look at your brand internally, and fix any broken aspects. It’s time to avoid negative reviews by ensuring that your customers have the best experience possible.

We hope, here at Reputation Resolutions, that the CRFA does not have a huge impact on your brand. However, know that we are always here to help, whether it’s a negative review or an industry crisis. Reach out today to learn how you can protect your brand and control your company’s reputation, both on and offline.