Consumer Review Fairness Act of 2016

Consumer Review Fairness Act of 2016 This bill makes a provision of a form contract void from the inception if it is used in the course of selling or leasing goods or services to: (1) prohibit or restrict 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) impose penalties or fees against individuals who engage in such communications; or (3) transfer or require 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. The bill does not apply to an employer-employee or independent contractor contract. The standards under which provisions of a form contract are considered void under this bill 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 on its Internet website 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 bill 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 bill. Enforcement authority is provided to the Federal Trade Commission (FTC) and states. The FTC must provide businesses with nonbinding best practices for compliance.