Studies have shown that 90% of customers report that their buying decisions are influenced by online reviews. If you’ve had the displeasure of stumbling upon a negative online review about your business, it probably felt a lot like a swift punch to the gut. Anger and panic set in as you wonder, “What can I do before that review damages my reputation?” You may even want to take legal action against the person who posted the inflammatory remark, but should you?
Lawsuits cost money, time and energy, so it is important to really pause and think before deciding to pour your resources into suing over a negative online review. Keep in mind that customers are allowed to say that you suck! Customers are free to post their opinions. A customer crosses the line, however, if she makes a false statement of fact, which can be proven or disproven. If the customer has made a false statement of fact, then you may be able to sue for defamation or libel. You would bear the burden of disproving the customer’s statement, and you must be able to show how your business was actually damaged by the statement.
Also, many online review sites enjoy immunity, which protects them against defamation claims. This means that a case against the review site will most likely be unsuccessful, even if you may have a good case against the reviewer. However, review sites may still be liable in some cases. If, for example, the review sites edit the customer’s review before publishing it so that it can be read defamatorily, they may be liable.
Even if your business prevails in a lawsuit over a bad online review, the overall consequences may be more detrimental to your business than the poor review itself. Media coverage alleging that your company provided bad service and then sued to remove a customer’s negative online review are two red flags to consumers. Also, such litigation may attract habitual users of online review websites to continuously target your business whether or not they have used your services! Businesses have also reported receiving several additional poor ratings initially following a lawsuit. Keeping in mind possible negative consequences of suing, consider these alternatives to help minimize the damage of a negative review.
1. Keep them happy: Make every effort to prevent customers from getting frustrated to the point of writing a bad review. Like all dedicated business owners, you demand excellence from yourself and your business, and that goes a long way to ensure that customers are happy. Understand though that there will always be those nightmare customers who will never be satisfied despite your efforts.
2. Keep your cool: Responding with anger won’t help your business or the dissatisfied customer. You can turn a negative review into a positive opportunity for your business by addressing the complaint professionally and diplomatically. Think about your policies and practices for face-to-face interactions with customers, and apply those same strategies to your online response.
3. Write a private response: Evaluate the merits of the customer’s complaint and determine what can be done to address their issue. By choosing to first address the customer privately, your business can avoid a public debate. The customer will also be more likely to remove the negative review on his own if he feels that he has been respected and taken seriously in a private message.
4. If the customer does not take down the review, you might want to respond publically: If the issue was successfully resolved, but the customer did not change or delete the review, you may want to simply respond that you were glad to successfully address the concern. When appropriate, you could also go further and include the steps that the business took to correct the situation. If the customer remains unsatisfied, yet you believe that the claims made in the review are inaccurate, now may be your chance to correct the facts while not getting into specific inaccuracies. Once again, be cautious of starting a battle. It might be helpful to have a neutral third-party review your response before you post it — a friend, an uninvolved co-worker, or even your attorney.
5. Encourage positive reviews: Encourage customers with positive experiences to share those online. This will help to soften the blow from any negative reviews that may still exist. Many times customers are willing to post a review, but are just not aware of the opportunity, or do not take the initiative to do so on their own. Most businesses have a large pool of happy and loyal customers.
If none of the above work, or if you need to assess your litigation options, speak to an attorney. Defamation is actionable, and even if online statements are not obviously defamatory, an attorney may be able to work with the review site or the customer to have the statement removed regardless.
For more information on this topic, contact our firm.
Alex Gertsburg is a managing partner at Gertsburg Licata. He may be reached at (216) 573-6000 or at [email protected].
Gertsburg Licata is a full-service, strategic growth firm, specializing in business law, M&A advisory and executive talent solutions for entrepreneurs and executives of start-up and middle-market enterprises. Contact us today to discuss how we can help you secure your next competitive advantage. We are also home to CoverMySix®, our unique, anti-litigation audit service for middle-market companies.
This article is for informational purposes only. It is merely intended to provide a very general overview of a certain area of the law. Nothing in this article is intended to create an attorney-client relationship or provide legal advice. You should not rely on anything in this article without first consulting with an attorney licensed to practice in your jurisdiction. If you have specific questions about your matter, please contact an attorney licensed to practice in your jurisdiction.
