text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Consumer Review Freedom Act of 
  2015''.
  
  SEC. 2. CONSUMER REVIEW PROTECTION.
  
      (a) Definitions.--In this section:
              (1) Commission.--The term ``Commission'' means the Federal 
          Trade Commission.
              (2) Covered communication.--The term ``covered 
          communication'' means a written, oral, or pictorial review, 
          performance assessment of, or other similar analysis of, 
          including by electronic means, the goods, services, or conduct 
          of a person by an individual who is party to a form contract 
          with respect to which such person is also a party.
              (3) Form contract.--
                      (A) In general.--Except as provided in subparagraph 
                  (B), the term ``form contract'' means a contract with 
                  standardized terms--
                              (i) used by a person in the course of 
                          selling or leasing the person's goods or 
                          services; and
                              (ii) imposed on an individual without a 
                          meaningful opportunity for such individual to 
                          negotiate the standardized terms.
                      (B) Exception.--The term ``form contract'' does not 
                  include an employer-employee or independent contractor 
                  contract.
              (4) Pictorial.--The term ``pictorial'' includes pictures, 
          photographs, video, illustrations, and symbols.
      (b) Invalidity of Contracts That Impede Consumer Reviews.--
              (1) In general.--Except as provided in paragraphs (2) and 
          (3), a provision of a form contract is void from the inception 
          of such contract if such provision--
                      (A) prohibits or restricts the ability of an 
                  individual who is a party to the form contract to 
                  engage in a covered communication;
                      (B) imposes a penalty or fee against an individual 
                  who is a party to the form contract for engaging in a 
                  covered communication; or
                      (C) transfers or requires an individual who is a 
                  party to the form contract to transfer to any person 
                  any intellectual property rights in review or feedback 
                  content, with the exception of a non-exclusive license 
                  to use the content, that the individual may have in any 
                  otherwise lawful covered communication about such 
                  person or the goods or services provided by such 
                  person.
              (2) Rule of construction.--Nothing in paragraph (1) shall 
          be construed to affect--
                      (A) any duty of confidentiality imposed by law 
                  (including agency guidance);
                      (B) any civil cause of action for defamation, 
                  libel, or slander, or any similar cause of action;
                      (C) any party's right to remove or refuse to 
                  display publicly on an Internet website or webpage 
                  owned, operated, or otherwise controlled by such party 
                  any content of a covered communication that--
                              (i) contains the personal information or 
                          likeness of another person or is libelous, 
                          harassing, abusive, obscene, vulgar, sexually 
                          explicit, or inappropriate with respect to 
                          race, gender, sexuality, ethnicity, or other 
                          intrinsic characteristic;
                              (ii) is unrelated to the goods or services 
                          offered by or available at such party's 
                          Internet website or webpage; or
                              (iii) is clearly false or misleading; or
                      (D) a party's right to establish terms and 
                  conditions with respect to the creation of photographs 
                  or video of such party's property when those 
                  photographs or video are created by an employee or 
                  independent contractor of a commercial entity and 
                  solely intended for commercial purposes by that entity.
              (3) Exceptions.--Paragraph (1) shall not apply to the 
          extent that a provision of a form contract prohibits disclosure 
          or submission of, or reserves the right of a person or business 
          that hosts online consumer reviews or comments to remove--
                      (A) trade secrets or commercial or financial 
                  information obtained from a person and considered 
                  privileged or confidential;
                      (B) personnel and medical files and similar 
                  information the disclosure of which would constitute a 
                  clearly unwarranted invasion of personal privacy;
                      (C) records or information compiled for law 
                  enforcement purposes, the disclosure of which would 
                  constitute a clearly unwarranted invasion of personal 
                  privacy;
                      (D) content that is unlawful or otherwise meets the 
                  requirements of paragraph (2)(C); or
                      (E) content that contains any computer viruses, 
                  worms, or other potentially damaging computer code, 
                  processes, programs, applications, or files.
      (c) Prohibition.--It shall be unlawful for a person to offer a form 
  contract containing a provision described as void in subsection (b).
      (d) Enforcement by Commission.--
              (1) Unfair or deceptive acts or practices.--A violation of 
          subsection (c) by a person with respect to which the Commission 
          is empowered under section 5(a)(2) of the Federal Trade 
          Commission Act (15 U.S.C. 45(a)(2)) shall be treated as a 
          violation of a rule defining an unfair or deceptive act or 
          practice prescribed under section 18(a)(1)(B) of the Federal 
          Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
              (2) Powers of commission.--
                      (A) In general.--The Commission shall enforce this 
                  section in the same manner, by the same means, and with 
                  the same jurisdiction, powers, and duties as though all 
                  applicable terms and provisions of the Federal Trade 
                  Commission Act (15 U.S.C. 41 et seq.) were incorporated 
                  into and made a part of this Act.
                      (B) Privileges and immunities.--Any person who 
                  violates this section shall be subject to the penalties 
                  and entitled to the privileges and immunities provided 
                  in the Federal Trade Commission Act (15 U.S.C. 41 et 
                  seq.).
      (e) Enforcement by States.--
              (1) Authorization.--Subject to subparagraph (B), in any 
          case in which the attorney general of a State has reason to 
          believe that an interest of the residents of the State has been 
          or is threatened or adversely affected by the engagement of any 
          person subject to subsection (c) in a practice that violates 
          such subsection, the attorney general of the State may, as 
          parens patriae, bring a civil action on behalf of the residents 
          of the State in an appropriate district court of the United 
          States to obtain appropriate relief.
              (2) Rights of federal trade commission.--
                      (A) Notice to federal trade commission.--
                              (i) In general.--Except as provided in 
                          clause (iii), the attorney general of a State 
                          shall notify the Commission in writing that the 
                          attorney general intends to bring a civil 
                          action under paragraph (1) before initiating 
                          the civil action against a person described in 
                          subsection (d)(1).
                              (ii) Contents.--The notification required 
                          by clause (i) with respect to a civil action 
                          shall include a copy of the complaint to be 
                          filed to initiate the civil action.
                              (iii) Exception.--If it is not feasible for 
                          the attorney general of a State to provide the 
                          notification required by clause (i) before 
                          initiating a civil action under paragraph (1), 
                          the attorney general shall notify the 
                          Commission immediately upon instituting the 
                          civil action.
                      (B) Intervention by federal trade commission.--The 
                  Commission may--
                              (i) intervene in any civil action brought 
                          by the attorney general of a State under 
                          paragraph (1) against a person described in 
                          subsection (d)(1); and
                              (ii) upon intervening--
                                      (I) be heard on all matters arising 
                                  in the civil action; and
                                      (II) file petitions for appeal of a 
                                  decision in the civil action.
              (3) Investigatory powers.--Nothing in this subsection may 
          be construed to prevent the attorney general of a State from 
          exercising the powers conferred on the attorney general by the 
          laws of the State to conduct investigations, to administer 
          oaths or affirmations, or to compel the attendance of witnesses 
          or the production of documentary or other evidence.
              (4) Preemptive action by federal trade commission.--If the 
          Federal Trade Commission institutes a civil action or an 
          administrative action with respect to a violation of subsection 
          (c), the attorney general of a State may not, during the 
          pendency of such action, bring a civil action under paragraph 
          (1) against any defendant named in the complaint of the 
          Commission for the violation with respect to which the 
          Commission instituted such action.
              (5) Venue; service of process.--
                      (A) Venue.--Any action brought under paragraph (1) 
                  may be brought in--
                              (i) the district court of the United States 
                          that meets applicable requirements relating to 
                          venue under section 1391 of title 28, United 
                          States Code; or
                              (ii) another court of competent 
                          jurisdiction.
                      (B) Service of process.--In an action brought under 
                  paragraph (1), process may be served in any district in 
                  which the defendant--
                              (i) is an inhabitant; or
                              (ii) may be found.
              (6) Actions by other state officials.--
                      (A) In general.--In addition to civil actions 
                  brought by attorneys general under paragraph (1), any 
                  other consumer protection officer of a State who is 
                  authorized by the State to do so may bring a civil 
                  action under paragraph (1), subject to the same 
                  requirements and limitations that apply under this 
                  subsection to civil actions brought by attorneys 
                  general.
                      (B) Savings provision.--Nothing in this subsection 
                  may be construed to prohibit an authorized official of 
                  a State from initiating or continuing any proceeding in 
                  a court of the State for a violation of any civil or 
                  criminal law of the State.
      (f)  Education and Outreach for Businesses.--Not later than 60 days 
  after the date of the enactment of this Act, the Commission shall 
  commence conducting education and outreach that provides businesses 
  with non-binding best practices for compliance with this Act.
      (g) Relation to State Causes of Action.--Nothing in this section 
  shall be construed to affect any cause of action brought by a person 
  that exists or may exist under State law.
      (h) Effective Dates.--This section shall take effect on the date of 
  the enactment of this Act, except that--
              (1) subsections (b) and (c) shall apply with respect to 
          contracts in effect on or after the date that is 90 days after 
          the date of the enactment of this Act; and
              (2) subsections (d) and (e) shall apply with respect to 
          contracts in effect on or after the date that is 1 year after 
          the date of the enactment of this Act.
  
              Passed the Senate December 14, 2015.
  
              Attest:
  
                                                  JULIE E. ADAMS,
  
                                                               Secretary.
target: Consumer Review Freedom Act of 2015 (Sec. 2) This bill makes a provision of a form contract void from the inception if it: (1) prohibits or restricts an individual who is a party to such a contract from engaging in written, oral, or pictorial reviews, or other similar performance assessments or analyses of, including by electronic means, the goods, services, or conduct of a person that is also a party to the contract; (2) imposes penalties or fees against individuals who engage in such communications; or (3) transfers or requires the individual to transfer intellectual property rights in review or feedback content (with the exception of a nonexclusive license to use the content) in any otherwise lawful communications about such person or the goods or services provided by such person.  A &quot;form contract&quot; is a contract with standardized terms: (1) used by a person in the course of selling or leasing the person's goods or services, and (2) imposed on an individual without a meaningful opportunity to negotiate the standardized terms. The definition excludes an employer-employee or independent contractor contract. The standards under which provisions of a form contract are considered void under this Act shall not be construed to affect:  legal duties of confidentiality; civil actions for defamation, libel, or slander; or a party's right to establish terms and conditions for the creation of photographs or video of such party's property when those photographs or video are created by an employee or independent contractor of a commercial entity and are solely intended to be used for commercial purposes by that entity.  Such standards also shall not be construed to affect any party's right to remove or refuse to display publicly on an Internet website or webpage owned, operated, or controlled by such party content that: (1) contains the personal information or likeness of another person or is libelous, harassing, abusive, obscene, vulgar, sexually explicit, inappropriate with respect to race, gender, sexuality, ethnicity, or other intrinsic characteristic; (2) is unrelated to the goods or services offered by or available at such party's website; or (3) is clearly false or misleading. A provision shall not be considered void under this Act to the extent that it prohibits disclosure or submission of, or reserves the right of a person or business that hosts online consumer reviews or comments to remove, certain: (1) trade secrets or commercial or financial information; (2) personnel and medical files; (3) law enforcement records; (4) content that is unlawful or that a party has a right to remove or refuse to display; or (5) computer viruses or other potentially damaging computer code, processes, applications, or files. A person is prohibited from offering form contracts containing a provision that is considered void under this Act.  Enforcement authority is provided to the Federal Trade Commission (FTC) and states. The FTC must provide businesses with nonbinding best practices for compliance.
feat_title: Consumer Review Freedom Act of 2015