Defamation of Business: Protecting Your Company’s Reputation

Defamation of a business online is pervasive in modern society. If your business has been defamed online, it can often result in a loss of customers and, consequently, a loss of revenue for your business. Further complicating the problem, third party service providers, such as Yelp, Blogspot, Craigslist, PissedConsumer, and Rip Off Report, are protected by Section 230 of the Communications Decency Act, which states that a provider of an interactive computer service cannot be held liable for the republication of defamatory or tortious statements.

Our expert business defamation lawyers can help you remove defamatory statements from third party service providers. Our attorneys are experienced in dealing with online defamation and defamation litigation. If your business has wrongfully been targeted by a customer or competitor online, several remedies may be available. Contact us today to remedy your business defamation issue.

What Constitutes Business Defamation?

Business defamation—also called trade libel or commercial disparagement—occurs when a person or entity publishes a false statement of fact that damages a business’s reputation and causes economic harm. To prevail on a business defamation claim, the plaintiff must establish the same elements as a personal defamation claim: (1) a false statement of fact; (2) publication to a third party; (3) fault amounting to at least negligence; and (4) damages caused by the publication.

Statements that are defamatory per se as to a business typically include false statements that the business has committed fraud, that its products or services are dangerous or defective, or that the business has violated the law. When a statement is defamatory per se, damages are presumed under Michigan law and in most other jurisdictions—the plaintiff does not need to prove specific dollar amounts to establish a claim.

Trade Libel vs. Defamation: Understanding the Distinction

Trade libel is a distinct but related tort that applies specifically to false statements that disparage the quality of a business’s goods or services. Unlike general business defamation, which focuses on harm to the business’s reputation, trade libel focuses on harm to the commercial value of specific products or services. Under the traditional rule for trade libel, a plaintiff must prove actual, specific economic harm caused by the disparaging statement—a higher burden than standard defamation.

In practice, many online attacks on businesses involve both defamation of the business generally and trade libel of its specific products or services. An experienced business defamation lawyer will evaluate which theory provides the strongest basis for recovery under the specific facts and applicable state law.

Who Defames Businesses Online?

Business defamation online comes from several sources, each requiring a different legal approach:

• Disgruntled former customers: False negative reviews posted on Yelp, Google, or industry-specific review platforms are among the most common forms of business defamation. Courts distinguish between genuine opinion (protected by the First Amendment) and false statements of fact (actionable as defamation).
• Competitors: Business competitors may post false statements about a company’s products, pricing, or conduct to gain a competitive advantage. This is sometimes called “astroturfing” when it involves creating fake reviews or fake complaints.
• Former employees: Disgruntled former employees may post false statements on review platforms like Glassdoor or make defamatory statements on social media about their former employer’s business practices.
• Anonymous internet posters: Some of the most damaging online attacks come from completely anonymous sources that post false information on forums, complaint websites, or social media under pseudonyms.

Legal Strategies for Removing Defamatory Business Content

Because Section 230 of the Communications Decency Act, 47 U.S.C. § 230, shields platforms from liability for user-generated content, removing defamatory content about a business requires directing legal action at the person who posted it rather than at the platform. Our approach to business defamation cases typically involves the following steps:

• Documenting the defamatory content: Before taking any legal action, we preserve evidence of the defamatory content, including screenshots, cached versions, and metadata that may be relevant to identifying the poster and proving publication.
• Identifying the poster: If the poster is anonymous, we file a John Doe lawsuit and issue subpoenas to the platform or ISP to obtain the poster’s identity. Courts apply varying standards to these requests, but a well-pleaded defamation complaint will typically support expedited discovery to identify anonymous defendants.
• Cease and desist demand: Once the poster is identified, a cease and desist letter from a business defamation attorney often achieves voluntary removal without the need for litigation. The letter explains the legal basis for the defamation claim, demands removal of the content, and makes clear the legal consequences of non-compliance.
• Litigation and injunctive relief: If the poster refuses to remove the content, we file suit seeking damages and a court order compelling removal. A court order can then be served on the platform—including Google—to compel de-indexing of the defamatory content.

Damages Available in a Business Defamation Lawsuit

A business that prevails in a defamation lawsuit may recover several categories of damages. General damages compensate for harm to reputation that is difficult to quantify precisely. Special damages compensate for specific, provable economic harm—such as documented lost sales or customers who can be shown to have relied on the defamatory statement in deciding not to do business with the plaintiff. In cases involving actual malice or particularly egregious conduct, punitive damages may also be available.

In addition to monetary damages, the most important remedy in most business defamation cases is injunctive relief requiring the poster to remove the defamatory content and refrain from publishing additional defamatory statements. Injunctions provide ongoing protection and eliminate the practical problem of having to pursue new damages claims each time a defamer republishes the same false statements.

If your business has been targeted by false and defamatory statements online, contact the business defamation lawyers at Revision Legal today. We have successfully removed defamatory content from major platforms, identified anonymous defamers, and recovered damages in business defamation litigation across the country.

The Intersection of Business Defamation and Unfair Competition

Business defamation often overlaps with other business tort claims, including unfair competition and intentional interference with business relationships. When a competitor publishes false statements about your business to steal your customers or damage your reputation in the marketplace, these actions may give rise to claims beyond defamation alone. A claim for commercial disparagement under the common law focuses specifically on false statements that are designed to harm a business’s economic interests—and may be available even when a general defamation claim faces hurdles.

Michigan’s Consumer Protection Act, MCL § 445.901 et seq., also prohibits unfair, unconscionable, and deceptive methods, acts, or practices in the conduct of trade or commerce. A competitor who publishes false information about your business to divert your customers may be liable under this statute in addition to common law defamation. Our business defamation lawyers evaluate all available legal theories to ensure that you have the strongest possible case and the broadest range of remedies. Contact us today for a consultation.

The most effective business defamation cases are those where the plaintiff acts quickly, documents all evidence before it disappears, and works with experienced defamation counsel to pursue every available legal theory. If your business’s reputation is being attacked online by false statements, do not wait and hope the problem resolves itself. Defamatory content does not disappear on its own—it gets indexed, cached, and shared, and the damage to your business grows with every day that passes. Contact the business defamation attorneys at Revision Legal today for a consultation.