In-House Counsel Guidebook: How to Handle Internet Defamation and Online Reputation Attacks August 2014 | Page 18

16 Be mindful of anti-SLAPP statutes: Many states have passed statutes to combat so-called Strategic Lawsuits Against Public Participation (SLAPP). SLAPP lawsuits are often filed in reaction to criticism, in which a business may wish to silence its critics. Thus, states have passed anti-SLAPP statutes permitting a judge to dismiss frivolous lawsuits filed against those exercising their First Amendment rights. So, prior to filing any lawsuit, a plaintiff should not only should ensure he or she has a legal basis for its claims, but legal counsel should also have evidence prepared to survive an antiSLAPP motion, such as being able to prove the falsity or defamatory nature of the statements, plus proof of damages. Competitor Defamation When a competing business publishes a false review about a competitor online, or a fake review touting their own company, this violates the United States’ Lanham Act. The Lanham Act prohibits false advertising by competitors and provides that a business can recover significant damages, including treble damages, disgorgement of the competitors’ profits, costs of corrective advertising, and attorney’s fees if the publication of the false review is willful – which it overwhelmingly is. 15 U.S. Code § 1117(a). In a recent Pennsylvania case, a marble and granite installation business sued a competitor after it allegedly discovered that several posts on various product review websites were originating from its competitor’s IP address. The competitor attempted to argue: 1) these false reviews, as a matter of law, did not constitute false advertising, and 2) it was not responsible for its own employees’ online reviews. But the Court disagreed and held the fake reviews consti tuted © Copyright 2014, Vorys, Sater, Seymour and Pease LLP. All Rights Reserved.