A False Review Is Damaging Your Business — What Can You Do?

Online reviews can make or break a business.

A single negative comment can influence customer decisions, and when that comment is false, misleading, or malicious, the impact on your reputation and revenue can be severe.

If your business has been targeted by an untrue review, there may be legal avenues available to protect your interests.

Defamation Isn’t Always an Option

Defamation is often the first remedy people think of. It can apply when:

• Your reputation has been harmed; and
• You are an individual, a not-for-profit organisation, or a company with fewer than 10 employees.

Larger businesses, however, cannot rely on defamation laws. If your company has more than 10 employees, injurious falsehood may be the appropriate legal remedy.

Injurious Falsehood: A Powerful Alternative

When defamation is not available, a claim for injurious falsehood may be.

Who can bring this claim?

Any individual or company — regardless of size.

How can the false statement be made?

In any form, including:

• Spoken comments
• Written statements
• Online posts or reviews

What must you prove?

To succeed, you must establish that:

• The statement was false;
• It was made maliciously, with the intention of causing financial harm; and
• You suffered actual financial loss directly as a result of the false statement.

These claims require careful evidence gathering, particularly in relation to proving loss.

What If You Don’t Know Who Posted the Review?

Anonymous reviews are common, but they are not necessarily a dead end.

Catherine Ballantyne of Hunt & Hunt has successfully brought proceedings against Google to identify anonymous reviewers in appropriate cases.

Act Quickly

False reviews can rapidly damage sales, customer trust, and long-term brand value. If you believe your business has been targeted:

• Seek legal advice as soon as possible after the review is published.
• Early action can improve your prospects of identifying the reviewer and proving financial loss.
• A lawyer can assess whether defamation or injurious falsehood is the appropriate course.

Catherine Ballantyne, Principal at Hunt & Hunt, has extensive experience in this area and can be contacted at [email protected] or +61 3 8602 9200.