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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

EmploymentPartnershipConsultingServices

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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This 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.