![]() What Needs To Be Shown To Prove Defamation? Slander – Slander is any false or defamatory statement relayed through oral methods, typically through speech. Libel – Libel is any false or defamatory statement expressed through writing, pictures, signs, print, or any other communication method presented in physical form. There are two types of defamation - libel and slander. For instance, an honest and unbiased review of a product explains the problem with the product upon using it. ![]() Negative reviews may either be a good negative review or a bad negative review. Defamation can be in the form of libel or slander, and it can be bad for any business.Ĭonversely, a bad review is a negative review that reflects the poor first-hand experience of a customer with a company's product or services. For instance, if a statement is false, and a business loses customers due to the false statement, it may be considered defamation. Bad Reviewĭefamation can be described as a false statement presented as a fact which ends up causing injury or damage to the reputation of a person, business, or entity. Hence, if a reviewer is being sued for posting a bad review, they can file a petition requesting that the court dismiss the lawsuit on the basis that it lacks merit. The statute helps prevent people or businesses from using unfounded lawsuits, courts, or potential threats of a lawsuit, to intimidate and silence customers or other people from exercising their right of petition or free speech under the First Amendment. Requires customers to relinquish their intellectual property rights in the review.Ĭalifornia's anti-SLAPP (Strategic Lawsuit Against Public Participation) laws are designed to provide relief to SLAPP lawsuits. Imposes a penalty, fine, or fee against a customer that gives a review. Restricts a customer's ability to review a company's products, services, or conduct. According to the Act, it is illegal for a company to use a contract provision which: The Consumer Review Fairness Act of 2016 was enacted to protect customers from unjustified punishment and intimidation by businesses for posting honest reviews. This and many more examples have set legal precedents across the country for businesses to sue their customers for bad reviews. The couple eventually racked up $65,000 in legal fees, including a settlement payment of $15,000 to the company. The company claimed that the review was false, and it cost them 167 projects and $625,000 in revenue. In 2015, Footprints Floors, a flooring company in Colorado, sued a couple for a negative review posted on Yelp. However, if the statement is false or defamatory, a business can pursue legal action against the reviewer for posting intentionally misleading or negative reviews. Typically the review will describe the customer's experience, thereby helping potential customers make informed buying decisions. Can a Business Sue for Bad Reviews?ĭepending on the quality of products or services received from a business, customers are permitted to leave online reviews. Bill is proud to serve clients throughout Irvine, California, and the surrounding areas of Los Angeles, Orange County, and San Diego. ![]() He is available to discuss your unique situation, conduct a thorough investigation, and gather factual evidence to back up your claims.Īs an experienced California business litigation attorney, he will fight diligently to protect your legal rights, your business, and help you seek deserved compensation to cover damages or losses suffered by your business. Hanley, Attorney at Law, is dedicated to offering comprehensive legal guidance and reliable representation to clients facing complex business lawsuit matters, including cases involving defamation and bad reviews. If you or your business has sustained reputational damage due to a bad review, you may be eligible to take legal action against the reviewer and pursue compensation for your losses. While a good review can help boost your brand reputation, a negative review can also cause significant harm to your business. According to an annual Local Consumer Review Survey by, about 88% of customers read reviews to determine the quality of a business. Online reviews play a vital role in the growth and revenue of any business.
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