Yes, by any statement, oral or written, which lowers the reputation of business in the minds of reasonable people. Unlike an individual, a business can only sue for loss of business/customers and not for personal loss of reputation.

In what circumstance can a business be defamed?

This issue arises most commonly through customer complaints, particularly those posted on the Internet. Anything posted on the Internet is difficult to remove and can get wide exposure very quickly.

What can a business do if it feels it has been defamed?
Businesses which have been defamed can commence an action against the individual or entity that "published" the defamatory material.

When should a business seek legal advice?

As early as possible. As soon as the business knows there is a potential problem, legal advice should be sought. It is important to ensure that the action is commenced in the appropriate time period. The usual limitation period is two year, but, when dealing with media or news site or publication, the limitation period may be much shorter (as early as 6 weeks to give notice and 3 months to start the action).

Originally published November, 2012

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.