In today’s digital age, where social media has amplified the ease of communication, it is crucial to understand the potential impact of online actions. As a business owner, this is especially relevant, as your or your employees’ conduct online may have significant legal and reputation repercussions. This is the case if your statements harm another party’s reputation, which could be seen as defamatory. This article will explain defamation and illustrate the importance of considering its potential implications through examples.
Definition of Defamation
Defamation is the publication of material that harms a person’s reputation. In the modern day, it is considerably easier to unknowingly engage in defamatory behaviours. Indeed, social media and other common online platforms have given individuals a powerful tool to publish their opinions, often without considering legal ramifications.
This guide provides key information on how to manage a business dispute as quickly and cost-effectively as possible.
Defamation in New South Wales
Recognising this shift, the Defamation Act 2005 (NSW) was amended to include ‘electronic communication’. As a result, the following mediums now face the same legal scrutiny as traditional forms of defamation:
- emails;
- social media;
- blogs; and
- other digital means.
Further amendments occurred on 1 July 2021 to include the ‘serious harm requirement’. This threshold means that you must demonstrate that the defamatory statement has caused or is likely to cause serious harm to your reputation.
It is important to note that individuals and small businesses with less than 10 employees can sue for defamation. Larger companies with more than 10 employees can sue for ‘injurious falsehood’, which differs from defamation.
Continue reading this article below the formExamples of Online Defamation
As an individual or a small business, it is important that you recognise potential forms of defamation. This is significant not only to protect your reputation, but also to not engage in defamatory behaviour. Through examples, we highlight the consequences of defamatory content, emphasising the need for caution and mindfulness when engaging in online discussions. Understanding hypothetical examples in different contexts can help you learn the various ways defamation manifests digitally and the serious legal consequences that may follow.
Social Media Post
Scenario: An individual posts a false accusation on Facebook, claiming that a local restaurant owner is involved in illegal activities.
Potential Outcome: The restaurant owner, who suffered a significant drop in customers and tarnished reputation, decides to sue for defamation. In court, the owner proves that the accusations were baseless and malicious. The court rules in favour of the owner, awarding damages to compensate for the lost business and reputational harm.
Online Review
Scenario: A disgruntled customer leaves a highly negative and false review on a business’s Google profile, alleging that the business engages in fraudulent practices.
Potential Outcome: The business owner, noticing a decline in new customers, takes legal action against the reviewer. The court finds that the review was not only false but also written with the intent to harm the business’s reputation. The reviewer is ordered to pay damages and issue a public apology.
Influencer Content
Scenario: A social media influencer, without any evidence, claims on Instagram that a competitor’s skincare product causes severe allergic reactions.
Potential Outcome: The competitor, whose sales plummet following the influencer’s post, files a defamation lawsuit. The court examines the influencer’s claims and finds no factual basis for the statements. The influencer is found liable for defamation and is ordered to pay significant damages to the competitor, as well as retract the false statements.
News Article Comments
Scenario: A user posts defamatory comments under a news article, falsely accusing a public figure of being involved in corruption.
Potential Outcome: The public figure sues both the commenter and the news website for failing to moderate the defamatory content. The court rules that both parties are liable for the defamation. The commenter is ordered to pay damages, and the website is mandated to implement stricter moderation policies.
Private Messaging
Scenario: In a workplace group chat on a messaging app, an employee spreads false rumours accusing a colleague of stealing company property.
Potential Outcome: The accused colleague, whose reputation suffers as a result of the false rumours, files a defamation lawsuit against the employee who initiated the claims. The court finds the employee liable for defamation, considering the lack of evidence supporting the accusations and the significant harm caused to the colleague’s professional reputation. As a result, the employee is ordered to pay damages and issue a formal apology.
Key Takeaways
In running your business, you should acknowledge the importance of understanding defamation laws to navigate the complexities of online communication. There are a wide range of situations in which defamatory behaviour can arise, such as via false accusations on social media. As a result, you need to exercise caution and mindfulness when engaging in online discussions to avoid reputational damage, legal troubles, and financial losses. By recognising potential forms of defamation and refraining from engaging in defamatory behaviour, you can protect your reputation and uphold ethical standards in online interactions.
If you need help understanding online defamation, our experienced litigation lawyers can assist as part of our LegalVision membership. You will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. Call us today on 1800 485 742 or visit our membership page.
Frequently Asked Questions
Defamation includes any publication to a third party that damages an individual’s reputation or public image. In New South Wales, there is a ‘serious harm’ requirement that must be fulfilled.
Defamation can occur in a wide range of circumstances online, such as via social media comments, online reviews, influencer content, new article discussions and private message
We appreciate your feedback – your submission has been successfully received.
