What to Do if You’ve Been Defamed by Another Business

Table of Contents

Share at:

Being defamed by another business can be a shocking and infuriating experience. The rise of popular sites such as Facebook, Yelp and Google Reviews has opened the floodgates for potential defamation claims. Businesses have a unique opportunity to promote their own interests. Sadly, this allows competing businesses to bitterly tear down competitors without substance or proof. We will outline here, what potential steps to take to rectify the situation.

The Law of Defamation 

Defamation involves damaging the reputation of someone. This can take a variety of forms, from verbal statements to posts online. The Uniform Defamation Laws aim to provide solutions for defamed individuals without limiting the freedom of speech. Legally, the key elements to prove defamation include communication:

  1. Understood by an ordinary person as harming the reputation of the plaintiff that is false.
  2. Published by the defendant.
  3. Directed at the plaintiff.

There are a number of defences available to the accused. If there is a honest opinion or telling of some truth, then defamation may not be made out. Applicants have one year to submit a claim for defamation. Damages totalling $250,000 are available as well as costs.

Only small businesses with less than 10 employees or those that are not for profit can sue for defamation. This does not stop individuals within a business suing for defamation personally. In any event, business owners have limited protection of their business reputation. 

Alternate Solutions

For larger businesses, there are other ways to protect their business reputation. This could include:

1. Trying to prevent further defamation

Attempting to get into contact with the business and discuss the reason behind the defamatory conduct may be able to resolve the issue without the need for the Courts. Where the damage to reputation is online, the post should be reported. If it violates the sites guidelines, it will be removed. Removing the post prevents further damage from occurring. A cease and desist letter may be an effective solution in this case. This provides a formal warning to the other business about the legal impacts of their actions should they continue.

2. The tort of injurious falsehood

Where there has been a false statement posted that has caused actual damage to the business, this tort will apply. This may apply where defamation may have been proved under the uniform laws, but your business has more than 10 employees.

3. Seek relief for Misleading and Deceptive Conduct

A claim in consumer law for misleading and deceptive conduct may be available under section 18 of the Competition and Consumer Act 2010 (Cth). This may arise where there has been conduct that has or is likely to mislead or deceive in trade or commerce. This broad provision is available to both consumers and businesses alike to account for defamatory conduct. 

Conclusion

Ultimately, there are multiple avenues you can take if you have been defamed by another business. Consulting a legal professional where damage to your business reputation has occurred is the most important step you can take. A business lawyer would be able to advise on the prospects of success under these actions outlined above. In the meantime, business owners should look to mitigate the defamation from the source where possible and avoid any form of retaliation to best rectify the damage done.

Share at:

Simplify creating legal documents today

Browse through Lawpath's AI tools which can be used to draft, review and refine legal documents today!

Related Articles

How to Change Your Legal Name in Australia

Have you ever wondered how to change your legal name? It is easier than you might think. Read our guide on how to change your legal name in Australia.

Can I Claim My Education as a Tax Deduction?

Owning a business often means training staff, but this can be costly. Read about the requirements for claiming education as a tax deduction.

Choosing the Right Business Structure in Australia: Taxation Explained

Choosing the right business structure involves understanding their tax implications. Let us walk you through the process in our detailed guide.

How to Apply for a Tax File Number (TFN) Online (2026 Update)

Your Tax File Number (TFN) is an allocated number which you will carry with you throughout your life. Read about how to apply for it online here.

Inheritance and Estate Taxes in Australia: An Explainer

Taxes are a part of everyday life for people living in Australia. Read this article to find out how inheritance and estate taxes work.

Running a Cash Only Business? Tips for Keeping Track for Tax

Cash only businesses are fairly common. This does not mean they are tax exempt. Keep reading to find out how a business should keep track for tax.