In today’s digital world, a single negative review can have serious implications on your business’s reputation and your bottom line. When that review is false or malicious, the consequences can be more damaging.
So what are your legal options if you or your businesses is targeted with a false online review?
Defamation is not always available
Defamation is a potential cause of action if your reputation has been damaged and you are an individual, a company with under 10 employees or a not-for-profit organisation. However, defamation laws do not extend to businesses with more than 10 people.
Injurious Falsehood: an alternative path
If defamation is off the table, you may be able to pursue a claim for injurious falsehood.
Who can make a claim for injurious falsehood?
Anyone – any individual or company.
In what form must the statement be made?
The statement can be verbally (ie someone speaking to people / the press), in writing or online.
What do I have to prove?
You need to prove:
(a) the statement was false;
(b) it was made maliciously with the intention of doing financial harm; and
(c) that you have suffered a loss – unlike defamation, you must be able to prove the loss to you which is directly attributable to the false statement(s).
What if I don’t know who has written the review?
Good news, the Courts have recently ordered Google and other similar companies to provide information about the identity of reviewers.
Take action early
Negative reviews can be crippling for a business and can directly affect sales and profit. If you believe you or your business have had false statements made about you on the internet or social media, you should seek legal advice on the merits of your claim as soon as possible after the material is published.
For further information, please contact Catherine Ballantyne, Principal at Madgwicks Lawyers.
The information provided in this article is general in nature and cannot be relied on as legal advice, nor does it create an engagement. Please contact one our lawyers listed above for advice about your specific situation.
