Class Action Says Square, Cash App Developer Block Bars Users from Posting Negative Statements

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Block faces a proposed class action over an apparent provision in the terms of service for its financial platform and mobile apps that bars users from publicly making any “objectionable” or “harmful” statements about the company or its partners or products.

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The 11-page lawsuit alleges Block—the parent company of financial services platform Square and mobile payment service Cash App—has “clearly” violated California law by subjecting users to terms of service that “stifle” their right to free speech.

According to the suit, state law 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.”

Contrary to state regulations, Block has attempted to limit negative publicity by imposing on users terms that forbid them from making public statements that “contain anything that [Block] think[s] is objectionable” or harmful to the company, the case contends.

This “chilling” conduct aims to “silence” users—who purportedly agree to the terms simply by accessing Block’s services—and prevent any negative statements from tarnishing the public image of the company and its affiliates, the complaint claims.

The filing charges, however, that Block’s “strong-arm tactics” and “self-promoting” business practices, which are designed to maintain and grow its consumer base and “prop up [its] stock price,” are plainly prohibited by California law.

The freedom of consumers to “voice their opinions” 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 case stresses.

The lawsuit looks to represent any California residents who, during the statute of limitations period, visited or completed a transaction using Block’s financial platform, mobile apps, websites, software or other services.

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