Contract Glossary
Non-Disparagement
Definition
A clause that prohibits one or both parties from making negative or damaging statements about the other. Common in settlement agreements, employment contracts, and partnership dissolution agreements.
In Practice
After a messy business breakup or employee termination, a non-disparagement clause prevents both sides from publicly trashing each other. If a former partner starts telling your clients that your business is failing, they've breached the clause. Note: the FTC's 2024 rule bans non-disparagement in consumer review contexts — businesses can't silence honest customer reviews.
Common in these contract types
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Frequently asked questions about non-disparagement
For consumers, no. The Consumer Review Fairness Act (2016) and FTC enforcement prohibit businesses from penalizing consumers for honest reviews. For B2B contracts and employment agreements, non-disparagement clauses can restrict what you say publicly about the other party.
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Create your contractThis content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.