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