By Iain Clark
June 24, 2026
Digital communication has transformed how businesses interact with customers, suppliers and the public. While online platforms offer significant commercial opportunities, they also create new risks for business reputation.
A single review, social media post or viral allegation can reach thousands of people within hours and have a lasting impact on customer confidence and commercial performance.
Online Reviews: Where Criticism Becomes a Legal Issue
Online reviews are now a routine feature of business life.
Customers are generally entitled to express honest opinions about products and services, even when those opinions are highly critical. Negative feedback alone does not amount to defamation.
However, legal concerns may arise where reviewers:
- Make false factual allegations;
- Accuse businesses of criminal conduct;
- Allege fraud or dishonesty without evidence;
- Suggest regulatory breaches that have not occurred;
- Publish fabricated complaints; or
- Participate in coordinated campaigns intended to damage a business.
A crucial distinction exists between statements of fact and statements of opinion.
A customer stating that they were dissatisfied with a service will usually be expressing an opinion. By contrast, falsely alleging that a business knowingly deceives customers may carry very different legal consequences.
Businesses should avoid responding emotionally to adverse reviews and instead assess the legal and commercial implications carefully before taking action.
Social Media: A Growing Source of Defamation Claims
Social media platforms such as LinkedIn, X, Facebook, Instagram and TikTok have become a significant source of reputational disputes.
Commercial disagreements increasingly spill into public forums where allegations can be shared, amplified and republished by large audiences.
Common examples include:
- Allegations of unethical business practices;
- Claims of financial misconduct;
- Accusations of discrimination;
- Misleading statements about products or services; and
- False allegations concerning directors or senior management.
The speed and scale of social media create particular challenges. Harmful content can be copied, reposted and discussed across multiple platforms before corrective action becomes possible.
Employee Use of Social Media
Many businesses underestimate the risks associated with employee-generated content.
Comments made through personal social media accounts can still create legal and reputational difficulties for employers, particularly where employees are identifiable as representatives of the organisation.
Key risk areas include:
- Defamatory comments about competitors;
- Unsubstantiated allegations concerning clients;
- Disclosure of confidential information;
- Harassing or discriminatory content; and
- Publication of internal workplace disputes.
Regular policy reviews and staff training can help reduce these risks and establish clear expectations regarding online conduct.
Emerging Digital Threats
The nature of reputational risk continues to evolve.
Artificial Intelligence and Synthetic Content
Businesses may increasingly face fabricated articles, manipulated images and AI-generated misinformation designed to damage reputation or influence public perception.
Anonymous Online Publications
Anonymous websites, fake accounts and overseas publishers often make enforcement more difficult and increase investigation costs.
Influencer and Creator Liability
Influencers and content creators increasingly comment on businesses, products and services. As audiences grow, so too does the potential for reputational disputes arising from inaccurate or misleading statements.
Faster Crisis Cycles
Modern allegations can spread globally within minutes. Organisations must therefore be prepared to respond quickly and effectively when reputational issues emerge.
Conclusion
Digital platforms have fundamentally changed the nature of reputational risk. While businesses cannot eliminate criticism, they can take proactive steps to distinguish between legitimate consumer feedback and potentially unlawful publications.
Understanding the legal and practical risks associated with online reviews, social media and emerging technologies is now an essential component of effective business risk management.
To discuss any of the points raised further, please contact him below or a member of our Litigation team here.
| Iain Clark Partner, Solicitor Advocate, Litigation | ||||
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The information and opinions contained in this blog are for information only. They are not intended to constitute advice and should not be relied upon or considered as a replacement for advice. Before acting on any information contained in this blog, please seek solicitor’s advice from Gilson Gray.
