Can You Sue for Libel or Slander if Negative Reviews Are True on Yelp?

Local businesses often face the challenge of managing online reviews, including those that are negative. The question arises: can you sue for libel or slander against someone who posts negative reviews about your business on Yelp, even if the reviews are truthful?

Legal Protection for Truthful Reviews

In the United States, truth is a complete defense to defamation, which includes both libel and slander. Libel refers to written statements that damage someone's reputation, while slander involves spoken statements. Therefore, if a review on Yelp accurately reflects certain aspects of your business, you are unlikely to have a successful defamation lawsuit.

Moreover, many states have anti-SLAPP (Strategic Lawsuits Against Public Participation) laws to discourage meritless claims against individuals who criticize businesses or public figures. Anti-SLAPP laws often require the person bringing the lawsuit to pay the other party's legal fees if the lawsuit is found to be without merit. This further discourages baseless defamation claims.

Alternatives to Legal Action

Instead of pursuing a lawsuit, consider focusing on improving your business or responding to the reviews. Many customers value honesty and transparency, and addressing real issues based on negative reviews can help to regain or enhance your reputation.

Example Situations

If a Yelp user reports that your restaurant's shrimp scampi is awful, they are likely expressing an opinion. While this might be disappointing, it is not defamation unless the review includes false statements or rumors. Suppose a reviewer states that an airline allows its pilots to fly while drunk, based on what they observed. If this observation turns out to be true, the review is neither libel nor slander. However, the airline should address the issue for safety and public trust. If a police officer arrested a pilot for being intoxicated nearby, this would not constitute libel, as it is clear there was suspicion and action taken.

When You Can and Cannot Sue

While truthful reviews are generally protected, it is essential to identify whether the statements are true and accurate:

Check for any false information or rumors that could constitute defamation. Verify the source of information and whether the reviewer has a legitimate reason for suspicion. Consult with a local attorney to assess your specific legal situation and rights.

If the reviews are accurate and truthful, pursuing legal action is unlikely to be successful and could lead to additional legal fees.

Conclusion

Local businesses that receive truthful and accurate negative reviews on platforms like Yelp should consider their options carefully before pursuing legal action. Focusing on improving the business or addressing specific issues may be more effective than litigation, especially given the protective nature of the law for truthful statements.