The Absurdity of ERP Vendor Terms That Silence Buyers

At Engleman Associates, Inc. (EAI), we leverage over 25 years and 1,000 ERP projects to provide IT professionals and executives with candid, buyer-focused insights into enterprise resource planning (ERP) systems. In our latest educational video, “Complaining About the ERP Vendor Is Not Allowed,” Mark Engleman examines a troubling trend in ERP vendor contracts: commercial terms that prohibit buyers from making disparaging comments about the vendor.

In recent years, ERP vendor agreements have increasingly imposed restrictive terms that shift risk onto buyers. One particularly absurd example is a clause that seeks to prevent buyers from publicly criticizing the vendor, effectively stifling legitimate feedback. Such terms, often vaguely worded with phrases like “not limited to,” could potentially restrict any negative commentary, public or private. While these clauses may appear mutual, they disproportionately favor the vendor, as buyers—whose operations depend heavily on the ERP system—have far more reasons to voice concerns.

In the video, Mark shares a real-world case where a client successfully challenged and removed this clause, highlighting its lack of rational basis. This example underscores a broader issue: the erosion of buyer control in ERP agreements and the audacity of vendors attempting to suppress valid pushback, whether in user groups, legal actions, or other forums.

Watch the video to learn more about this concerning trend.

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ERP Vendors’ Non-Disparage Terms