When a customer is unhappy and highly vocal about it, it's usually a good idea to make amends when you can. However, there are some people that simply refused to be either pleased or appeased.
For many business owners, that's a big problem. One well-placed bad review online can cost a company greatly. For the most part, businesses are best advised to try to smooth over the issue or at least respond gracefully and hope for the best. But, what should you do if a customer makes a damaging allegation that you can prove is untrue? Should you sue? Here's what you need to consider.
1. Is the review only an opinion, or is it stating something as a fact?
If, for example, a customer says that he or she didn't like the food, the service, or the atmosphere of your restaurant, that's an opinion that he or she has the right to post—even if you think it's unfair and even if it lowers other people's opinions of your place. However, if a customer says that you "poisoned" him or her with your food or had roaches on the floor, those are statements of fact. You have a right to demand proof or demand a retraction.
2. Is the review attacking your character?
If a customer engages in personal libel against your character, that's also actionable. For example, if a customer gives your photography business a 2-star review because he or she didn't like their wedding photos and thought you were overpriced, that's one thing. If the customer calls you a liar and a cheat and says you are an alcoholic who was drunk the whole time you were supposed to be taking photos, that's an issue you can take to court. A defamation suit is very possible.
3. Do you have a non-disparagement clause in your customer contract?
If you and your customer have a contract, a non-disparagement clause may be enough to give you legal standing to act on any negative reviews—even if they're really just opinions. However, think carefully about the potential backlash of doing so. You could win the battle if you take the customer to court for damages but lose the war if it gets out that you penalize customers for leaving their honest opinions. It's better in the court of public opinion to take action against only those customers that allege something false or personally defamatory.
Don't assume that you can't strike back at a customer that tries to hide his or her identity. While it can take a few extra steps to identify your accuser if he or she hides behind an online pseudonym, a lawyer can usually get the courts to turn over the ISP address of online reviewers so they can be taken to court. If your business is suffering because of a review that makes false, defamatory claims, talk to a business litigation attorney today.
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