CEA, Yelp, Zenefits and R Street Institute Brief Congressional Staff on Negative Impacts of SLAPPs

ARLINGTON, Va.--()--On Monday, the Consumer Electronics Association (CEA)® along with CEA members Yelp, Zenefits, and R Street Institute briefed Congressional staff, businesses and advocacy organizations on the chilling impacts of lawsuits filed to censor or intimidate critics, called strategic lawsuits against public participation (SLAPPs).

Panelists shared how SLAPPs were used to stifle free speech in many areas including online reviews and business negotiations. In the case of online review sites – from the 75 million user reviews on TripAdvisor to the 57 million local reviews on Yelp and a myriad of other sites – honest user-generated reviews help consumers make informed decisions about where to spend their time and money. In states without anti-SLAPP statutes, these users can face prolonged lawsuits simply for expressing their opinion. The panel discussed the need for a federal anti-SLAPP statute, such as the SPEAK FREE Act proposed by Representatives Blake Farenthold (R-TX) and Anna Eshoo (D-CA).

"Seventy percent of people online use a review site before making a purchasing decision,” said Laurent Crenshaw, director of policy, Yelp. “These platforms allow users to make better purchasing decisions and make businesses more responsive to consumers. For this virtuous cycle to continue, we can't have chilled speech.”

While 28 states have laws designed to protect consumers from legal intimidation, millions of American consumers remain unprotected and federal legislation is needed.

“We live in an age where public comment forums are getting a lot of feedback,” said Mike Godwin, innovation policy director and general counsel, R Street Institute. “How do we keep those channels open? States are the laboratories of democracy and 28 states have already put in place protection from SLAPPs.”

“If we didn't have the CA legislation in place, it could have tied us for years,” said Chris Massey, vice president of public policy, Zenefits. His company recently fought and defeated a frivolous lawsuit in California thanks in part to the state’s strong anti-SLAPP statute. “It would have tied-up our ability to grow our company. We support federal legislation because you never know when this is going to happen – whether you're an individual or a business.”

“We thank Representatives Farenthold, Eshoo, and others for advancing federal anti-SLAPP legislation,” said Michael Hayes, manager of government relations, CEA. “Whether you express your opinion online or offline, you shouldn’t have to worry about the threat, and cost, of a SLAPP. We need a federal fix to ensure that these bogus lawsuits no longer undermine Americans’ free speech.”

About CEA:

The Consumer Electronics Association (CEA) is the technology trade association representing the $285 billion U.S. consumer electronics industry. More than 2,000 companies enjoy the benefits of CEA membership, including legislative and regulatory advocacy, market research, technical training and education, industry promotion, standards development and the fostering of business and strategic relationships. CEA also owns and produces CES – The Global Stage for Innovation. All profits from CES are reinvested into CEA’s industry services. Find CEA online at CE.org, InnovationMovement.com and on social.

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Contacts

Consumer Electronics Association (CEA)
Tyler Suiters, 703-907-7654
tsuiters@CE.org
www.CE.org
or
Bronwyn Flores, 703-907-7679
bflores@CE.org

Contacts

Consumer Electronics Association (CEA)
Tyler Suiters, 703-907-7654
tsuiters@CE.org
www.CE.org
or
Bronwyn Flores, 703-907-7679
bflores@CE.org