Anheuser-Busch Sued Over Alleged ‘Silencing’ Provision in Online Terms and Conditions
Last Updated on February 6, 2024
Callaway et al. v. Anheuser-Busch Companies, LLC et al.
Filed: January 25, 2024 ◆§ 2:24-cv-00704
Anheuser-Busch faces a lawsuit over a terms-and-conditions provision that requires online users to agree to not disparage the company or any of its products on social media.
California
Anheuser-Busch faces a proposed class action lawsuit over an apparent provision in its online terms and conditions that requires users of the beverage giant’s website and app to agree to not disparage the company or any of its products on social media.
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The 41-page lawsuit summarizes that Anheuser-Busch, through its online terms and conditions, “seeks to silence customers from criticizing” the company or its core products while broadly restricting how Anheuser-Busch.com users and prospective customers “may disseminate content concerning” the defendant. The suit notes that Anheuser-Busch is “particularly sensitive” to potentially damaging public statements in the wake of the public relations turbulence recently experienced as a result of running a Bud Light ad campaign featuring a trans rights activist.
“Thus, in order to maintain a positive public image,” the filing says, “Anheuser-Busch has engaged in an intentional business strategy to silence each and every customer or potential customer who visits and uses its Platforms by purporting to bind users to its Terms—immediately upon accessing any of its Platforms.”
The case alleges Anheuser-Busch’s chilling of consumer free speech is illegal in California given that it violates a state law that prohibits any contract or proposed contract from including a provision that waives a consumer’s right to make any statement regarding the “seller or lessor or its employees or agents, or concerning the goods or services.”
“Defendants’ strong-arm tactics to silence injured parties were and continue to be intentionally exercised to protect Defendants’ self-promoting public image for commercial and other benefits,” the suit contests.
In order to use AB’s online platforms, a visitor must agree to the company’s terms and conditions, the filing relays. In fact, the case says, Anheuser-Busch asserts that a user has read, understood and agreed to be bound by the terms simply upon accessing its platforms, regardless of whether they are just passing through or are actual customers or registered members online.
According to the complaint, Anheuser-Busch’s move to have users waive their right to make claims about the company or its products is “an important component of [its] business strategy,” which the case says “relies upon the popularity of its product offerings nationwide to generate significant revenue and profits.”
However, the company’s attempt to “silence” millions of customers and prospective customers is “clearly prohibited by California law,” the lawsuit states.
The lawsuit looks to cover all California residents who, during the fullest period allowed by law, accessed, downloaded, used or completed sales transactions on any Anheuser-Busch platform.
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