LOS ANGELES–A lawsuit has been filed against two major banks over so-called non-disparagement clauses included in the terms and conditions of online banking agreements with customers.
Critics of the clauses, as well as the plaintiffs, said they are designed to shut up unhappy customers.
The suit, which so far has named Bank of America and U.S. Bank, is seeking class action status. The case has been filed in California Superior Court in Los Angeles County.
In the case of the suit filed against U.S. Bank and reviewed by CUToday.info, five individuals have been named as plaintiffs.
The Power of Social Media
“Because of the power of social media and the Internet to publicize a company's offerings of goods and services and the potential harm to corporate interests when negative consumer statements go ‘viral,’ defendants have a significant incentive to minimize the negative publicity they receive, including in the form of negative online reviews and comments,” the suit against U.S. Bank reads. “Some companies have gone so far as to attempt to prohibit customers and potential customers from making negative statements about the goods or services they offer, to the detriment of consumers, potential consumers, and the public of the state of California.”
‘Counter to the Law’
Counter to California law, the suit further alleges the terms of U.S. Bank’s agreements with customers further requires they agree that in using the platforms they must not make any statement or comment that “poses a threat to…the reputation of (U.S. Bank) or any service provider.”
Those user agreements further state U.S. Bank may shut down any customer’s account if it is perceived as a “threat,” the suit claims.
The plaintiffs are asking for damages as determined by a jury trial.
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