18 Feb Defamation can be costly
Defamation is becoming more prevalent with the rise of social media
Defamation is a topic we get many questions about. With the explosion of social media, and the use of review sites and functions for marketing, it is very easy for a disgruntled person to vent in public about a customer experience that they may have found less than thrilling
Think before you tweet otherwise you could end up facing a costly defamation charge.
To be on the receiving end of a negative or even spiteful review or facebook post can be devastating.
By the time you see it, it’s potentially been seen by hundreds or thousands of other potential customers or clients. What can you do?
The Defamation Act 2005 can protect some small businesses
The law of defamation generally protects individuals, but corporations under a certain size can often have a cause of action (e.g. the Defamation Act 2005 NSW provides that a corporation with fewer than 10 employees and unrelated to another corporation, or a corporation not formed for financial gain may have a cause of action for defamation).
Prevention is better than cure when it comes to defamation
There are a number of elements to be met before a case can be made out, however, finding yourself mired in a Court case can be an extremely expensive and time consuming exercise.
Even having a valid defence can be expensive: you may successful run a truth defence, but if you cannot enforce a costs order then you may still be significantly out of pocket.
It is best to avoid the argument altogether by making sure that anything you post can not be construed as being able to harm the reputation and good name of the person (or small business).
A case study in defamation
One couple that found this out the hard way had shared on facebook that a neighbour (with whom they had been in a dispute with over his dogs) was “known to police” and “may or may not be related to satan”.
Check out the article from the Sydney Morning Herald here.
The judge found that defamatory imputations had been published, and awarded a verdict of over $14,000. However, with various other “side issues” involved in the proceedings (including arguments in Court over timing of apologies and other interlocutory skirmishes), the defendants’ legal bill exceeded $80,000 and placed them in peril of bankruptcy.
If you think a post or review is defamatory, you can contact us and we can give you some options.
If the material is trivial, it may be a good PR exercise to ask the poster to take down the post and see what you can do to mend the customer relationship.
At other times, it may be that a cease and desist letter is warranted.
Contact us today if you require any assistance with resolving a dispute.
(c) Progressive Legal Pty Ltd – All legal rights reserved (2020)
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Ian Aldridge is the Founder and Principal Lawyer Director at Progressive Legal. He has over 15 years experience in advising businesses in Australia and the UK. After practising in commercial litigation for 12 years in major Australian and International Law Firms, he decided to set up a NewLaw law firm in Australia and assist growing Australian businesses. Since then, he has advised over 2,500 small businesses over the past 6 years alone in relation to Intellectual Property Law, Commercial, Dispute Resolution, Workplace and Privacy Law. He has strived to build a law firm that takes a different approach to providing legal services. A truly client-focused law firm, Ian has built Progressive Legal that strives to deliver on predictable costs, excellent communication and care for his clients. As a legal pioneer, Ian has truly changed the way legal services are being provided in Australia, by building Legal Shield™, a legal subscription to obtain tailored legal documents and advice in a front-loaded retainer package, a world-first. He has a double degree in Law (Hons) and Economics (with a marketing major). He was admitted to the Supreme Court of NSW in 2005.
