Growth traps
What You Need To Know About Internet Defamation (Infographic)
A bad review can gut a small business. You see the comment online, maybe a customer posts it, and suddenly your phone stops ringing.
A bad review can gut a small business. You see the comment online, maybe a customer posts it, and suddenly your phone stops ringing. What do you do when a false, damaging statement about your company hits the internet?
One path: a trade libel or business defamation lawsuit against the person who posted it.
1. What is defamation?
Defamation happens when someone makes a false statement of fact. That statement then damages your business's reputation, or your own as the owner.
Every US state lets you take legal action against people or companies who spread these baseless, damaging claims.
2. Who can defame you?
Anyone who knowingly or negligently lies about you, your business, or your team can face a defamation claim.
There's a subtle difference between a false statement and a misleading one. Defamation laws often cover outright false statements. Misleading statements, though, might fall under "false light" torts in some places. It's a technical distinction, but it matters.
3. Two types of defamation
Defamation breaks down into two main types: slander and libel.
- Slander is spoken defamation. Say someone goes on TV or radio and makes a false statement that harms your business. You can sue that person for slander.
- Libel is defamation in print or images. If someone publishes a false statement in a newspaper, a blog post, or on social media, you can sue the author for libel.
4. Fact, opinion, and defamation
The line between fact and opinion matters deeply in defamation law.
Generally, a public statement that ruins a reputation must be presented as fact, and you must prove it false to win a defamation case. Often, you'll need to show the statements were either factual, or a blend of fact and opinion, and then prove their falsity.
5. International defamation laws
Defamation laws shift from country to country. Some nations even treat defamation as a criminal charge.
US plaintiffs often try to get their cases heard in foreign courts, especially in Commonwealth countries. They do this to use the more claimant-friendly defamation laws available there.
The three critical points about defamation law in the United States:
- To win, you must prove the defendant made a false statement of fact, either on purpose or through negligence.
- Harm is central to slander and libel. If you can't show the statements caused real, material damage, winning a defamation claim becomes very tough.
- Defamation has a short statute of limitations. Don't wait to act; you might miss your window.
Aaron Kelly is a top-rated defamation and online business law attorney. Aaron advocates for and supports cutting-edge, innovative ideas that embrace the entrepreneurial spirit.