British Columbia Law
Business Reputation Defences - Protecting Your Good Name
In this internet age - especially with the promotion of Google and Yelp reviews - businesses including professionals are subject to negative comments that are sometimes not based on real facts.
If someone says something that is NOT true, and it damages your business, then you have legal options including a lawsuit for defamation. The negative comment cannot be just a negative opinion - to be defamation, the statement must be false, published, and damaging to reputation; intent to harm is not required.
The law may assume some kinds of harm - for example, the reputation of a professional is often presumed to be harmed by false factual claims.
What Is Defamation Under BC Law?
Defamation is the legal term for statements that damage a person's or business's reputation. In Canada, defamation law has two branches: libel (written or published statements) and slander (spoken statements). Online reviews, social media posts, forum comments, and emails are all treated as libel because they are in written, published form.
To succeed in a defamation claim in BC, you must generally prove three things:
First, the statement was published - that is, communicated to at least one other person beyond the person about whom it was made. A negative Google review is published the moment it appears online.
Second, the statement referred to you or your business specifically - a reader would understand the statement to be about your business or you personally.
Third, the statement damaged your reputation in the eyes of a reasonable person. Courts assess this objectively: would a reasonable reader think less of your business after reading the statement?
The Defences Available to the Person Who Made the Statement
Not every negative review is actionable. BC defamation law recognizes several important defences that protect the person who made the statement:
Truth (Justification): If the statement is substantially true, it is an absolute defence. A reviewer who genuinely had a bad experience and accurately describes it cannot be sued for defamation, even if the description harms your business.
Fair Comment: Statements of opinion about matters of public interest are protected as fair comment, provided they are genuinely opinions (not disguised statements of false fact) and are based on facts that are true. A restaurant review that says "the food was terrible" is an opinion. A review that says "the owner used expired ingredients" is a statement of fact, and if false, could be defamatory.
Privilege: Statements made in certain contexts are protected - for example, statements made in court proceedings or to a regulatory body are absolutely privileged. Statements made in good faith to protect a legitimate interest may attract qualified privilege.
Responsible Communication on Matters of Public Interest: In appropriate cases, media and journalists can rely on this defence when reporting on genuine matters of public concern.
What Remedies Are Available?
If you succeed in a defamation claim, BC courts can award:
General damages - compensation for harm to reputation, which courts can infer without proof of specific financial loss in some cases.
Special damages - proven financial losses caused by the defamatory statement, such as lost contracts or lost clients.
Aggravated damages - additional compensation where the defendant's conduct was particularly high-handed or malicious.
Punitive damages - in rare cases where the defendant's conduct was so egregious that punishment beyond compensation is warranted.
Injunctions - a court order requiring the person to remove the statement and refrain from making further defamatory statements.
The Online Defamation Challenge: Anonymity and Jurisdiction
One of the most frustrating aspects of online defamation is anonymity. A reviewer on Google, Yelp, or a forum may be using a pseudonym. BC courts have the power to issue Norwich Orders - orders requiring a platform or internet service provider to disclose the identity of an anonymous poster so the claimant can serve them with legal proceedings. These orders have been granted in BC in appropriate circumstances.
Jurisdiction can also be an issue if the reviewer is located outside Canada. However, if the statement was published and read in BC and caused harm in BC, BC courts generally have jurisdiction to hear the claim.
BC's Protection of Public Participation Act (Anti-SLAPP)
BC also has legislation designed to prevent businesses from using defamation claims to silence legitimate public criticism: the Protection of Public Participation Act (PPPA). If a defendant can show that the claim arises from expression that relates to a matter of public interest, the defendant can apply to have the claim dismissed at an early stage.
Courts balance this against the plaintiff's ability to show that the claim has substantial merit and that the harm caused by the expression is sufficiently serious.
This means that before pursuing a defamation claim, a careful legal assessment is essential to ensure the claim is strong and is not vulnerable to an early dismissal under the PPPA.
Practical Steps If You Are Being Defamed
Document everything immediately. Take screenshots of the statement with the date, time, and URL visible. Statements can be deleted or edited, and contemporaneous evidence is essential.
Do not respond publicly in a way that escalates the dispute. Heated public responses can make matters worse and give the other side more material to work with.
Consider a cease-and-desist letter. In many cases, a formal legal letter demanding removal of the statement and an apology is sufficient to resolve the matter without litigation. Many people are unaware of the legal consequences of their online statements and will comply when confronted with a lawyer's letter.
Assess the cost-benefit of litigation carefully. Defamation litigation can be expensive, and courts can be reluctant to award large damages for harm that is difficult to quantify. A lawyer's realistic assessment of your prospects and potential recovery is essential before committing to litigation.
Sea to Sky Law™ advises businesses and professionals across BC on defamation matters - from initial assessment and cease-and-desist letters through to court proceedings where necessary. If you believe your business reputation has been damaged by false statements online or in any other forum, contact Andrew Liggett BA JD CD for a confidential consultation about your options.
This article is general information, not legal or tax advice. Meetings are by appointment only, by phone or secure video.