Class Action Says Nationwide Illegally ‘Silences’ California Consumers from Posting Negative Reviews on Website, App

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A proposed class action alleges Nationwide Mutual Insurance Company has violated California law by including a provision in its terms and conditions prohibiting website visitors and mobile app users from posting negative reviews.

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According to the 11-page lawsuit, the defendant requires anyone who uses Nationwide.com, the Nationwide mobile app, or any of its affiliates’ websites or apps to waive their right to make any disparaging comments about the insurance company on these platforms.

Specifically, Nationwide’s terms and conditions of use state that by visiting its websites or using its apps, consumers agree to refrain from posting “any comments, statements or materials” that contain “any content that is … threatening, defamatory, derogatory … or otherwise injurious to Nationwide or third parties,” the complaint relays.

However, the case claims that Nationwide’s efforts to “silence” its current and prospective customers from criticizing its business, services, products or employees are considered unlawful under California’s Civil Code, which aims to protect consumers’ right to free speech.

“The California Legislature reasonably and correctly determined that such freedom is important to keep the public informed and keep large corporations honest about the quality of the goods or services they offer to consumers,” the filing says.

The suit contends that Nationwide’s alleged misconduct is an “intentional business strategy,” since it knows negative publicity can lead to a loss of business, decreased revenue and a drop in its stock price.

Per the case, Nationwide has subjected millions of Californians to its unlawful terms and denied potential customers access to accurate information necessary to make informed financial decisions.

The lawsuit looks to represent anyone in California who visited, used or completed transactions on Nationwide.com, the Nationwide mobile app, or any of its affiliates’ websites or apps.

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