Defamation?

Someone Has Posted Lies About You or Your Business Online:

When Does It Become Defamation and What Can You Do…

In today’s digital world, reputations can be damaged in seconds, causing significant loss. Whether a negative Google review, a LinkedIn post, a Facebook comment or an email circulated to clients/customers can quickly reach a wide audience and remain accessible long after it was first published.

Whilst the law protects freedom of expression, it also provides remedies where false statements cause serious damage to the reputation of an individual or a business. Defamation is the legal term used when a false statement damages the reputation of an individual or business. It is important to understand that defamation is the umbrella term.

Defamation, Libel and Slander: What’s the Difference?

Today, most defamation claims concern libel, simply because so much communication takes place online. A social media post or online review can remain visible indefinitely and may be shared with hundreds or thousands of people. For most businesses and individuals, however, the practical distinction is less important than it once was.

Helpfully, the key question is the same:

“Has a false allegation caused serious harm to a reputation?”

Queue: The Serious Harm Test

The law is governed by the Defamation Act 2013 (“the Act”). Section 1 provides:

“A statement is not defamatory unless its publication has caused or is likely to cause serious harm to the reputation of the claimant.”

Section 1 of the Act goes on to state:

“For the purposes of this section, harm to the reputation of a body that trades for profit is not ‘serious harm’ unless it has caused or is likely to cause the body serious financial loss.”

Defamation of Individuals

Many defamation claims involve allegations directed at a person’s honesty, competence, or professional standing. Such allegations can affect professional relationships and personal standing.

Whilst an individual may point to damage to their personal or professional reputation, a company will generally need to show that the publication has caused serious harm, and that harm has caused, or is likely to cause, serious financial loss (for example, a client-company decides not to contract with you in light of the defamation, leading to the loss of that contract).

Defamation of Businesses

Businesses also have reputations worth protecting, particularly now, where online reviews are so prevalent.

A false allegation about a company can quickly undermine customer confidence and damage commercial relationships, resulting in a loss. Provided the company can substantiate a serious financial loss, such allegations may give rise to a claim in defamation.

Can You Sue Over a Negative Review?

This is often asked.

Many people assume that any damaging review will be defamatory. That is not the case.

The law distinguishes between statements of fact and statements of (honest) opinion.

For example:

“This was one of the worst companies I have ever dealt with, and I feel I was charged too much.”

Opinion.

“This company lies to its clients and overcharges them.”

Defamatory statement of fact.

What Defences Are Available?

Section 2 of the Act provides:

“It is a defence to an action for defamation for the defendant to show that the imputation conveyed by the statement complained of is substantially true.”

If a statement is true, a claim will generally fail, regardless of how damaging the truth may be.

Another important defence is that of “public interest”. These recognise that individuals, journalists and commentators must be able to express genuinely held opinions and discuss matters of legitimate public concern without fear of unwarranted litigation.

What Should You Do If You Have Been Defamed?

The appropriate response will depend on the nature of the publication and the damage caused.

In some cases, a solicitor’s letter seeking removal of the content, an apology and an undertaking not to repeat the allegations may resolve the matter swiftly and cost-effectively.

In more serious cases, it may be necessary to seek damages, an injunction or a court order requiring the removal of the publication. Where online content is concerned, acting promptly can be important before the allegations are shared more widely.

Equally, if you are accused of defamation, it is often advisable to seek legal advice before responding. Attempts to defend yourself online, repeat the allegations, or delete material without preserving evidence can sometimes create further difficulties.

Conclusion

Defamation claims frequently arise where personal and corporate reputations overlap. An allegation against a company director may damage both the director personally and the business they represent. Similarly, an accusation directed at a company may have serious consequences for its directors and shareholders.

Whether the target is an individual or a business, the central question remains the same: has a false statement caused, or is it likely to cause, serious harm to reputation? If so, legal remedies may be available. Understanding your rights at an early stage can often prevent the situation from escalating and help protect what may be one of your most valuable assets: your reputation.

At Wellers, we advise individuals, organisations and businesses on all aspects of defamation. If you think that you or your business has been defamed, or are being accused of defamatory acts, please contact James Day at james.day@wellerslawgroup.com or on 01732 457575, or another member of the Dispute Resolution team for a no-obligation initial discussion.