Can You Sue for a Bad Review: What Business Owners Should Know

What is defamation?

Defamation is when someone publicly makes a false statement about you that negatively impacts your reputation or business. 

It’s divided into two categories: libel and slander. 

What is libel?

Libel is an untrue and harmful written statement made to the public. 

For example, if a client writes a Google review saying you stole from them when you didn’t. 

What is slander?

Slander is an untrue and harmful verbal statement made to the public. 

For example, if someone did a TV interview about your business and falsely claimed you damaged their property.

Do bad online reviews count as defamation?

Yes—it’s possible for an online review on Google, Yelp, Facebook, or other review platforms to count as defamation as long as the statements are untrue, harmful, and publicly available. 

Bad reviews in private messages, personal emails, or in response to satisfaction surveys that are only visible to you don’t qualify as defamation. 

When can you sue for a bad review?

For a bad review to be considered for a defamation lawsuit, a written or verbal statement must: 

• Be untrue 
• Available to the public
• Cause reputational or monetary harm to a business or person

So, if a client left a fake online review about your company that everyone could see, and you were able to prove it impacted your reputation or income, it would be a candidate for a defamation lawsuit. 

However, a false but private statement would not count as defamation. For example, if a client called a friend and told them you damaged their home when you didn’t, it wouldn’t be considered a defamatory statement. 

But if they were to then make that statement publicly, like on social media, causing you to lose business, it could be considered libelous. 

If the review doesn’t meet the requirements for libel—for example, if it’s dramatic but true—you won’t be able to sue the person who left it. Instead, it’s important to know how to respond to defuse and resolve the situation before it does any damage.

What do I need to sue for a bad review?

Simply having an untrue negative review online doesn’t automatically mean it qualifies as defamation. To actually sue a client over their statement, it needs to include the following elements: 

1. It has to be untrue. If the statement is true, it won’t qualify as defamation. For example, if the client says you damaged their property, and you did, you can’t sue them for including that information in their review.

2. The review must be publicly available. For example, if it’s published on a third-party website or social media platform where it’s visible to the general public.
   
3. It must identify a specific person or business. A libelous statement has to refer to your or your business directly. It can’t just be a vague reference to “a plumbing business” that you have reason to believe is yours.
   
4. You have to be able to prove it was reputationally or financially harmful to you or your business. For example, if another person comments on the review to say they chose not to do business with you because of it, that proves you lost a potential client because of the statement.
   
5. The person who wrote the review must be at fault. This means that they must be aware that the statement they are making is untrue when they make it. A simple misunderstanding or mistake typically doesn’t count as defamation. 

Be sure to document everything

Even if the review checks all these boxes, defamation can be difficult to prove, so it’s important to gather and documentation that may bolster your case, such as: 

• Copies of email, text, and written communications between you and the client
• Any recordings of phone calls or voicemail messages
• Contracts, agreements, quotes, invoices, and payments
• Details about the review itself, including a copy of it, the web address where it can be found, which platform it was posted on, any responses or comments on it, information about the author, as well as the date and time
• Any witness accounts of the events that took place
• Any other information you have about the service you provided to the client, such as fleet tracking, employee timesheets, materials, equipment, etc. 

READ MORE: Never miss a detail again with work completion forms

Can you sue review sites directly?

No. Review sites like Google Reviews, Yelp, and Angie’s List are protected under the U.S. Communications Decency Act. They cannot be held liable for content posted by reviewers.

Are reviewers protected by law?

Yes, in the U.S., reviewers are protected under the First Amendment, anti-SLAPP laws, and the Consumer Review Fairness Act. 

The first amendment protects free speech. 

Anti-SLAPP statutes prevent companies from censoring reviewers and critics through intimidation. 

And the Consumer Review Fairness Act protects consumers’ rights to share their honest opinions about a business and its products or services with the public, including on social media platforms. 

Together, they work to prevent companies from using underhanded methods to keep unsatisfied customers from telling others about their experiences. For example, through intimidation, lawsuits, or threats. 

This means that customers are free to leave negative or positive reviews about companies online, as long as they’re truthful.

How to handle bad reviews

Not every bad review is going to qualify for defamation. And, even if it does, it may not be worth suing over. Instead, try using these practical tips to handle them without having to hire an attorney. 

1. Respond to negative reviews

When you see a negative review, the first thing you do should be to respond to it. With the right response, you can get the review updated or removed altogether.

Start a polite conversation with the customer to help you understand the root of the problem. 

Maybe it’s a simple misunderstanding or miscommunication that can be fixed by offering a refund or an apology.

Pro Tip: Use a negative review response template to save time and ensure your message is effective. 

If you decide to write your own response, follow these best practices: 

• Respond quickly
• Personalize your response
• Apologize and empathize
• Own the problem and reinforce that you hold yourself to the highest standards
• Attempt to make things right by taking things offline
• If the issue is resolved, ask the customer to update their review

WATCH: How to respond to negative reviews

2. Contact the review site to have the review removed.

If you can’t get in touch with the reviewer or they refuse to work with you, you can escalate the issue on the platform where the review was published.

This is your best bet for fake or factually inaccurate reviews, or any that violate the review site’s policies. 

To remove fake online reviews from Facebook or Google, use these guides: 

• How to remove reviews from Facebook 
• How to delete a Google review

3. Invest in software and systems to manage bad reviews

Business software can give you a leg up when it comes to dealing with negative reviews and preventing them in the first place.

Having software and systems in place helps you:

Keep track of client and job information

Keeping track of all your job and service details in a CRM, like Jobber, helps you stay organized. It gives you access to contracts, invoices, quotes, receipts, employee timesheets, and crew locations for those times when customers ask questions, something goes wrong, or a client claims you failed to do something.

Ask customers for feedback

You can also use software to automate job follow ups, giving you the chance to ask customers if they’re satisfied with your work and resolve any possible issues before they get the chance to leave a nasty review.

For example, Van Wu, owner of Trust Home Comfort Ltd., uses Jobber’s client follow-up features after every job.

“After I do an install or repair, I follow-up with an email and answer the customer’s concerns. Normally, I get review feedback through Jobber’s email follow-up tool. I can ask my clients for a rating between 1-10, and they can add comments. Plus, follow-ups after a quote or a service help me look professional.”

READ MORE: 3 feedback surveys that will make you look more professional

Improve client communications before and during the job

Of course, you don’t have to wait until the job is over.

Good communication early on is one of the best ways to avoid unhappy clients and bad reviews.

• Before you start a job, offer professional itemized quotes so clients know what to expect.
• Ahead of a service call, send on-my-way texts and emails to build trust.
• And, during the job, give clients access to a customer portal where they can review appointment details, see who’s coming to their home, and contact you directly.

Even though it’s possible to sue someone over a bad review, it takes a lot of time, effort, and, in some cases, money. Before heading to your lawyer’s office, try to resolve the issue by responding to the review in a thoughtful way or having it removed. 

And make sure not to: 

• Respond too quickly, especially if your emotions are running high, because it may only make the problem worse. 
• Ignore the review, because it can give the impression that you don’t care about customer satisfaction or that the review is true. 

If you can’t resolve the conflict on your own, and it’s negatively impacting your reputation or income, moving forward with a defamation lawsuit may be an option. But it should only be considered as a last resort. 

Originally published in December 2021. Last updated on July 18, 2024.