Summary
- Defamation is a false statement of fact, not opinion, that harms your business’s reputation.
- Under the Defamation Act 2013 a business must show the statement has caused, or is likely to cause, serious financial harm.
- Libel covers written statements and slander covers spoken ones, and a claim generally must be brought within one year.
- This guide explains business defamation and your options in England and Wales.
- LegalVision’s business lawyers specialise in advising clients on defamation and reputation disputes.
Tips for Businesses
Save screenshots and links before content is deleted. Check the statement is presented as fact, not opinion, and that it has caused real financial harm. For minor reviews, respond calmly or contact the platform. Take legal advice before sending a formal letter of claim.
Defamation is a false statement of fact that harms the reputation of a person or business. Opinion, insult and fair criticism are not defamation. In the UK, Defamation Act 2013 sets the test: a business must show the statement has caused, or is likely to cause, serious financial harm. Written defamation is libel and spoken defamation is slander. A claim must usually be brought within one year of publication. Your response should match the reach of the statement, since suing over a single bad review often causes more damage than the review itself. This article will outline how to know if someone has defamed your business and what you can do about it.
What is Defamation?
Defamation law in England and Wales requires that someone makes a false statement about you or your business. This statement must result in a loss of reputation or harm to your character. Importantly, the false statement must be presented as a fact rather than a mere opinion.
As an example, imagine that someone leaves a review of your apple-selling business that says: ‘These apples suck!’ This will not be a defamatory statement because it is only an opinion. However, imagine instead that someone leaves a review which says: ‘These apples gave me serious food poisoning and I almost died after eating them!’ In this case, this will be a defamatory statement (provided, of course, that it was not true). Indeed, if you can show in court that the statement was true, it will not amount to defamation.
Further, it is worth noting the difference between defamation, libel and slander. People often use these terms interchangeably, but they all have different meanings within the law. Defamation is the umbrella term. It refers to when a false statement is made about someone that causes a loss of reputation. On the other hand, libel and slander are both types of defamation.
What is Libel?
Libel refers to false or defamatory statements which are written down. For example, a letter, email, text message or social media post could amount to libel.
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What is Slander?
Slander is also a false statement. However, unlike libel, this statement is spoken rather than written down. You can slander someone through a speech, but it could also be a video posted on social media.
Therefore, you can know if someone has defamed your business if someone has made a false statement about your business. They must have presented this statement as a fact rather than an opinion.
What Should I Do if Someone Has Defamed My Business?
If you are on the receiving end of a defamatory statement, your business’ reputation is at stake. Because of this, there are a number of options available to you. These options will depend on whether people have seen the defamatory material or not.
What if Not Many People Have Seen the Defamation?
If the defamatory material has not reached a wide audience, it is usually not a good idea to bring legal proceedings. Online defamation, typically through reviews, usually falls within this category. In these scenarios, the defamatory statement is not likely to hurt your business reputation significantly. Often, bringing a legal case against a customer who has left a bad review will hurt your reputation more than it will do good.
If the minor defamation is from a customer, the best course of action is to contact the customer and discuss the feedback. If it is clearly wrong and it is persistent, you may want to contact the website administrator.
What if Many People Have Seen the Defamation?
On the other hand, if the defamatory material has reached a wide audience, you can use legal proceedings to defend your reputation. This might be the case if a public figure has made a statement about your business. Another example is if a newspaper has put out a publication which is false. Sometimes, however, it is best to pursue alternative dispute resolution methods for privacy and financial reasons.
If you bring legal proceedings, you may get compensated for the reputational damage experienced. The court may also impose a costs order. Keep in mind, however, that the purpose of defamation laws is to protect your reputation from unjustified attacks. The main thing at stake is your business’ reputation. As a result, it may be equally productive to launch a positive marketing campaign as it is to take legal action.
Key Takeaways
Defamation is when your business is the subject of a false statement that hurts your business’s reputation. If this happens, you may have a legal right that you can exercise against the other party. This will allow you to obtain compensation to make up for the loss of reputation. Finally, if your brand has been damaged by a defamatory statement, it is also usually a good idea to reconsider your marketing strategy. By doing this, you can likely make up for the loss of reputation that you have suffered. If you suspect you may have a defamation issue, our experienced disputes lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today at 0808 196 8584 or visit our membership page.
Frequently Asked Questions
Is a negative review defamation?
Only if it states something false as fact and causes serious harm. A review saying your product is poor is opinion. A false claim of fact, such as that your food caused illness, can be defamatory if untrue.
What can I do about false or misleading online reviews?
Gather evidence that the review is false, then report it to the platform and ask for removal. If it is clearly wrong and persists, you can take further action to protect your reputation.
Can I get compensation if my business is defamed?
Yes. If you bring a successful claim, the court can award compensation for the reputational damage suffered. It may also make a costs order. The main aim is to protect your reputation from unjustified attacks.
Is it always worth suing over defamation?
No. If few people saw the statement, legal action can harm your reputation more than the words did. Contacting the customer, approaching the platform, or running a positive campaign is often more productive than court.
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