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Can you sue over a bad review? What business owners should know first

When a negative review may cross into defamation, why most do not, what US law says about legal threats, and the steps to take before you call a lawyer.

Reputfy Editorial··7 min read

A review calls your business a scam. It is unfair, it is at the top of your profile, and it is costing you work. The thought arrives quickly: can I sue them?

Sometimes, yes. Usually it is the wrong move, and in some cases the threat alone can land you in trouble. Here is how to think it through before you do anything.

This is general information about US rules, not legal advice. Defamation law varies by state and country, so talk to a qualified lawyer about your own situation.

The short answer

You can only bring a defamation claim over a false statement of fact that harmed you. A harsh opinion, however unfair it feels, is generally protected.

What the review says Likely category Sensible first step
"Worst service ever, total rip-off" Opinion Reply calmly
"They were rude and I felt ignored" Opinion Reply and look into it
"They charged me for work they never did" Could be fact, check your records Reply, gather records
"The owner has a conviction for fraud" (untrue) False statement of fact Save evidence, report, ask a lawyer
"I never used them, but don't go there" Not based on an experience Report to the platform

What defamation usually requires

The details vary by state, but a claim generally needs all of these:

  • A statement of fact, not an opinion. "This dentist is awful" is an opinion. "This dentist has no license" is a claim that can be checked.
  • It is false. Truth is a defense. If your records show the customer is broadly right, you do not have a case.
  • It was published to someone other than you. A public review meets this one.
  • It caused harm, such as provable lost business.
  • Some level of fault by the person who wrote it.

The hard parts are usually the first two and the fourth. Showing that one review cost you specific customers is difficult.

Why you usually cannot sue the platform

Section 230 of the US Communications Decency Act says a provider of an interactive computer service shall not be treated as the publisher of information provided by someone else. In practice, that generally protects review sites from defamation claims over what their users write. Your claim, if you have one, is usually against the reviewer, who may be anonymous.

Three risks owners rarely think about

The FTC's rule on consumer reviews and testimonials has been in force since October 2024. Its review suppression section bars using an unfounded or groundless legal threat to stop a review or get one removed. It also bars intimidation and false accusations about the reviewer.

The FTC's own questions and answers say you can threaten legal action if you have a legitimate basis for doing so. So a lawyer's letter based on a provably false claim is different from a stern "remove this or else" sent to someone who simply disliked your service. Civil penalties were up to $51,744 per violation in 2024. Our explainer on the FTC rule covers the rest.

Contracts cannot ban honest reviews

The Consumer Review Fairness Act of 2016 makes it illegal for a business to use form contract terms that bar or restrict reviews, or that charge a penalty or fee for leaving one. So a "no negative reviews" clause in your terms will not help you, and having one is a problem in itself. The FTC advises removing such clauses even if you never meant to enforce them.

A lawsuit can make the review more visible

A court case is public record. A dispute that was one review on one profile can become a story, and new reviews can arrive because of it. Many US states also have anti-SLAPP laws, which can let a defendant ask for a speech-related claim to be dismissed early. In some states, you could end up paying their legal fees if you lose.

What to do before you call a lawyer

Work through this checklist, in order:

  1. Do not reply yet. Take a day if you need it.
  2. Save the evidence. Screenshot the review, the date, the reviewer's profile and the web address.
  3. Check your records. Find the customer, the job and what actually happened.
  4. Sort it. Is it an opinion, a factual claim you can disprove, or a breach of platform rules?
  5. Report it if it breaks the rules. Fake reviews, conflicts of interest, threats and hate speech can all come down. On Google, reports only work for policy violations. Google says not to report a review just because you disagree with it. If the report fails, the Reviews Management Tool offers a one-time appeal. See how to spot a fake review and get it removed.
  6. Reply calmly in public. Your reply is read by every future customer.
  7. Talk to a lawyer if a specific false factual claim is doing real harm. Do it promptly, because time limits for defamation claims can be short.

When a lawyer's call is worth it

  • A false claim of a crime, or of a missing license or qualification.
  • A false health or safety claim you can disprove with records.
  • A pattern from one person across several sites.
  • A former employee or competitor making specific false claims. See what to do about competitor fake reviews.
  • Threats or stalking. Those may be matters for the police first.

A reply that disputes a claim without a threat

If a review states something untrue, you can say so. Stick to facts, keep private details out, and offer a way to talk.

Hi Jordan, we take this seriously, so we checked our records. We have no job matching this date or description, and we do not want to guess at what happened. If we have missed something, please call Maria on 555-0100 and we will look at it properly.

Notice what it does not say. It does not call the reviewer a liar, mention lawyers or share a customer's details. A future customer reading it sees someone calm and on top of their records.

For more on tone, read how to respond to a negative review.

How Reputfy helps

Reputfy cannot decide whether a review is defamatory, and neither can a seal. It can keep you steady while you decide. AI drafts a reply and you approve it before anything is posted, so nothing goes out in anger. Sealed reviews carry a SHA-256 fingerprint timestamped via OpenTimestamps, which shows what a review said at a point in time, whatever its truth. And customers can check your Reputfy seal for themselves, so your honest reviews do more of the talking.