Negative Online Reviews - Do they Constitute Business Defamation?

We are living in the digital age and consumers use the internet to make a variety of decisions, including what products to buy and what professionals to hire. During their research, many savvy consumers go online to look at the reviews the business has received on local business directories like Yelp or Google+. These online reviews can have a profound effect on the success of your business so it is important to understand your rights should your business receive a negative one.

In the case that your business has received a negative online review, you may have recourse under state or Federal defamation laws. However, before pursuing that route, you should consider using any dispute or review process provided by the review site. Defamation is generally defined as the act of intentionally publishing a false statement that has the ability to negatively effect another’s reputation. Defamation laws protect individuals and businesses alike. Publication is the communication of the defamatory statement to another person and the act of posting a review to a website usually qualifies. Whether a statement has a negative effect on another’s reputation is judged using a reasonable person standard and will be looked at on a case by case basis. In order for the statement to actionable, it does not have to be intentionally defamatory; it just has to be intentionally published. Defamatory statements must be false and cannot be opinions. Whether your situation meets the necessary threshold for defamation may be difficult to ascertain, so it is important to consult with a qualified attorney before pursuing a claim for business defamation.

If you believe that your business has received an online review that contains false information and is damaging to your business reputation, you might have a claim for defamation. Recent civil cases for this type of wrong have resulted in large verdicts for the businesses that were injured. While you most likely cannot pursue an action against the hosting website, as they are usually exempt under the Digital Millennium Copyright Act (DMCA), you might be able to recover from the individual that made the statement. All litigation should be considered using a cost-benefit analysis and business defamation cases resulting from online reviews are not any different.