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Let’s face it: reading negative reviews of your business online can be a shock!
As a business owner, you know that negative reviews – whether fake or genuine – can hurt your business’s reputation. In today’s digital landscape, where reviews are more visible and influential than ever, staying on top of online feedback is essential.
There are a number of laws and legal actions you should keep in mind when responding to negative reviews. Let’s walk through what you need to know in 2025.
Fake v Genuine Reviews
When dealing with a negative online review, the first step is to determine whether the reviewer is a genuine customer or not. Authenticating the identity behind the review can be challenging, especially since many reviewers choose to hide behind pseudonyms.
If you can match the review to your business records, you’ll know it’s genuine. Once you’ve established whether the review is real or fake, you can take the appropriate next steps.
Dealing With Fake Reviews
If you’ve determined that a review is fake, there are several actions you can take. For instance, if it’s a Google review, you can navigate to the “Reviews” tab in Google My Business and flag it as inappropriate. However, bear in mind that flagging does not always lead to immediate removal.
You may also consider filing a complaint with the Australian Competition and Consumer Commission (ACCC). The ACCC can investigate whether the review is genuine or fake and take action if necessary. Additionally, reviewing your website terms and conditions and privacy policy can help protect your business’s reputation by clearly outlining the rules for online conduct.
A Fake Negative Review Has Damaged My Business’ Reputation. Can I Get Compensation?
While pursuing compensation through defamation laws isn’t the easiest path, it is possible to obtain redress for fake negative reviews. Legal precedents set in recent years show that compensation can be awarded for lost income and damage to goodwill.
One high-profile case a few years ago in the South Australian Supreme Court saw a barrister successfully win a sizeable defamation payout. Although the original case dates back to earlier years, further incidents similar to this have reinforced the legal pathway available in 2025. In that case, the reviewer left a review despite never having interacted with the barrister, and after repeated incidents of posting under different aliases, the court awarded compensation totalling $750,000 – covering lost income, harm to reputation, and even legal fees. More recent Google statistics indicate that negative reviews can attract upwards of 1,200 views per month, amplifying their potential impact on your business.
For businesses facing substantial reputational and financial damage from fake reviews, it’s worth seeking professional advice. Consulting with experienced online business lawyers can help you explore your legal options, including possible defamation claims and ways to have fraudulent content removed.
Responding to Genuine Negative Reviews
If a negative review turns out to be genuine, the best approach is to respond with empathy and a willingness to make things right. Apologise for the customer’s poor experience and, if possible, offer a remedy – whether it be a refund, exchange, or simply a commitment to address the issue.
Express your appreciation for their honest feedback and note any improvements or updates you’ve made that address their concerns. This not only helps to resolve the issue but also demonstrates to other prospective customers that you take feedback seriously. In many cases, engaging courteously with the reviewer may even encourage them to retract or amend their negative comments.
In today’s digital age, where social media and review platforms are closely monitored, it’s more important than ever to have a robust online reputation management strategy. Regularly reviewing and updating your policies – and even having a legal team conduct a contract review of your business’s online guidelines – can ensure you’re fully protected.
What To Take Away…
A negative review can cause significant stress and even financial loss for your business. It’s essential to quickly determine whether a review is genuine or fake and take appropriate action.
If you find yourself on the receiving end of such a review, consider speaking to a lawyer to explore your legal options – sometimes a proactive legal response can prevent further damage.
If you need more information about how various types of online reviews can impact your business and what steps you should take in response, please feel free to call us on 1800 730 617 or email us at team@sprintlaw.com.au. We’re here to help you protect your reputation in today’s ever-evolving online world.
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