From banks to car dealers, how companies use NDAs to keep unhappy customers quiet
Charlene Hatcher, a Toronto Metropolitan University student, lost around $20,000 in a scam after fraudsters impersonated Scotiabank employees and convinced her to hand over her cards; the bank later offered her $5,000 with a confidentiality clause, which she refused to sign. Her case reflects a broader trend of companies using non-disclosure agreements (NDAs) in consumer settlements to prevent customers from speaking publicly about their experiences. Critics argue that such clauses, originally intended to protect trade secrets, are now routinely used across industries to suppress negative publicity, raising concerns about transparency and consumer rights.
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Charlene Hatcher could have taken the money. But then, she wouldn’t have been able to talk about what happened.Scammers had called her one day in mid-September last year, posing – quite convincingly – as employees of the Bank of Nova Scotia. They knew her date of birth, current and previous addresses, and listed some of her recent transactions, she said. They also appeared to already have her bank personal identification number. When they urged her to give her supposedly compromised debit and credit cards to a courier, she complied. Instead, the fraudsters used the cards to withdraw thousands of dollars.Open this photo in gallery:Toronto Metropolitan University student Charlene Hatcher became the victim of a financial scam that wiped out her savings.Sammy Kogan/The Globe and MailWhen Ms.
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