Can leaving a negative business review online land you in legal trouble?

Online Review

A reviewer is submitting the review Source: Getty Images/alubalish

Can consumers get themselves legal trouble by posting negative online reviews?


When shopping online, it's common practice to research the product or service one is considering, and it's not uncommon to leave a review yourself.

A consumer’s research is often based on reviews posted on the net by other consumers, and could range from holiday accommodation, destinations, restaurants to various products and services.


Highlights:

  • Generally, defamation laws used to protect individuals can also be used by some small businesses to sue consumers for posting negative online reviews.
  • A testimonial is a positive statement about a person or thing

So. how seriously should we take reviews and what legal issues are involved in giving negative feedback on a product or service?

Practicing Commercial Law in Melbourne, Ms Molina Asthana says,

“If you’re writing a review to try to ruin the reputation of a business then that could put you in trouble.”

Ms Asthana says defamation laws used to protect individuals can also be used by businesses to sue consumers for posting negative online reviews. 

She says whether a consumer can be sued for making defamatory comments in a review depends on the size the company a consumer is reviewing.

"Only individuals, certain not-for-profit corporations and small corporations can sue for defamation. Small corporations are those which employ fewer than 10 people and which are not related to any other corporation." 

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Ms Asthana suggested it is better to resolve the issue by finding a quick solution privately by the businesses if there is any negative review.

“Like an apology, or monetary compensation so that it sends the right message. It makes a customer feel cared for.”

Citing a recent case she handled involving a Melbourne restaurant, Asthana says the issue was sorted out quickly and risked resulting in a huge monetary loss if taken to court.

People check reviews for just about any product or service and decide about the products and services based on what other consumers’ feedback is.  

Ms Molina Asthana says, “There may be some general flaws, [for example] in the hotel accommodation you used, or in a restaurant you dined in or even a product you bought, etcetera. So it is important to give your feedback irrespective of how big an issue it may be.” 

She suggests that consumers should post their feedback but stick to the truth. These reviews are always been taken seriously especially if they are negative.

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Disclaimer: We’d like to point out that the information contained in this segment is general and is not a specific advice. If you would like accurate information relevant to your situation, you should ask a registered legal expert.

 



 

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