---
title: "Can a Business Sue for a Bad Review? What US Law Says"
description: "When a US business can sue over an online review: opinion versus false fact, Section 230, the Consumer Review Fairness Act, anti-SLAPP laws and first steps."
url: https://brandprotecto.com/blog/can-you-sue-for-a-bad-review
updated: 2026-10-28
publisher: BRANDprotecto (info@brandprotecto.com)
---

# Can a Business Sue for a Bad Review?

[Home](https://brandprotecto.com) / [Blog](https://brandprotecto.com/blog) / Rules & compliance
Rules & compliance

# Can a Business Sue for a Bad Review?

A lawsuit over a negative review is possible only in narrow cases and often backfires. Here is how opinion, defamation, Section 230 and the Consumer Review Fairness Act fit together.

By the BRANDprotecto editorial team · Published October 28, 2026 · Last reviewed October 28, 2026 · 6 min read

## In short

- A business can sue only over specific false statements of fact, not over honest opinions or true complaints.
- Section 230 means the review site is usually not liable for what a reviewer wrote.
- The Consumer Review Fairness Act voids form-contract clauses that ban or penalize reviews.
- Groundless legal threats can breach the FTC's review rule, and anti-SLAPP laws can make weak lawsuits costly.
- Documenting, replying, resolving and reporting usually come before any legal step.

In the United States, a business can sue over a bad review only in narrow cases. Honest opinions and true complaints are generally protected; a defamation claim needs a false statement of fact that harms the business. Review sites are usually shielded by Section 230, form-contract clauses that ban reviews are void under the Consumer Review Fairness Act, and anti-SLAPP laws in some states can make weak lawsuits costly.

This article is general information, not legal advice. Defamation and anti-SLAPP rules are mostly state law and depend heavily on the facts, so consult a qualified lawyer in your jurisdiction before taking any step.

## Opinion versus a false statement of fact

The central question is what the review actually says. In [Milkovich v. Lorain Journal Co. (1990)](https://www.law.cornell.edu/supremecourt/text/497/1) , the US Supreme Court held that the First Amendment does not create a separate privilege for anything labeled opinion. What matters is whether a statement is sufficiently factual to be proved true or false. Statements that cannot reasonably be interpreted as stating actual facts are protected, and wrapping a factual accusation in the words in my opinion does not remove its factual implication.

The examples below are illustrative, not legal conclusions about any real review:

Review wording (illustrative) How it is likely to be read

The service was slow and the staff seemed uninterested. Subjective experience and opinion; very hard to prove false.

Worst plumber in town, total waste of money. Hyperbole and opinion, not a provable fact.

They charged my card twice and refused to refund me. A factual claim that records can confirm or contradict.

In my opinion the owner steals from customers. Opinion wording, but it implies a provable factual accusation.

Even a factual statement is only a problem if it is false. If the double charge really happened, the review is a complaint, not a legal claim, and the right response is to fix it. Defamation law also has state-specific elements, defenses and filing deadlines, which is one reason to speak to a lawyer early rather than late.

## Who you would actually sue: Section 230

Many owners first think of suing the platform. Section 230(c)(1) of the [Communications Decency Act (47 U.S.C. 230)](https://www.law.cornell.edu/uscode/text/47/230) states that no provider or user of an interactive computer service shall be treated as the publisher or speaker of information provided by another information content provider. In practice, the person who wrote the review, not the site that hosts it, is usually the potential defendant.

That does not leave you without options on the platform side. Platforms remove content that breaks their own policies, and Google, for example, [accepts reports of content that users believe violates the law or their rights](https://support.google.com/legal/answer/3110420?hl=en) . Our guide on [how to get a Google review removed](https://brandprotecto.com/blog/how-to-get-a-google-review-removed) covers both routes and their limits.

## Contracts cannot gag reviews: the Consumer Review Fairness Act

Some businesses have tried to prevent reviews through their terms and conditions. The [Consumer Review Fairness Act (15 U.S.C. 45b)](https://www.law.cornell.edu/uscode/text/15/45b) makes a provision in a form contract void if it prohibits or restricts a customer's ability to review the business, imposes a penalty or fee for a review, or requires the customer to transfer intellectual property rights in review content. Offering a form contract with such a provision is unlawful.

According to the FTC's [Consumer Review Fairness Act guide for businesses](https://www.ftc.gov/business-guidance/resources/consumer-review-fairness-act-what-businesses-need-know) , the FTC and state attorneys general enforce the law, a violation is treated like violating an FTC rule, and the law does not apply to employment contracts or agreements with independent contractors. The statute also says it does not affect civil claims for defamation, libel or slander, and that a business may still remove content from its own site that, for example, is harassing or abusive, unrelated to its products or services, or clearly false or misleading. The FTC adds that an opinion you disagree with is unlikely to meet the clearly false or misleading standard.

The FTC has enforced the act. In May 2019 it [announced its first actions exclusively enforcing the CRFA](https://www.ftc.gov/news-events/news/press-releases/2019/05/ftc-announces-first-actions-exclusively-enforcing-consumer-review-fairness-act) , against three companies, including a flooring company whose purchase order allegedly told customers that by signing they were agreeing, under penalty of civil suit, not to disparage the company. In June 2019 it [announced two more actions](https://www.ftc.gov/news-events/news/press-releases/2019/06/ftc-announces-two-actions-enforcing-consumer-review-fairness-act) , including one against a vacation rental company whose contract set minimum liquidated damages of $25,000 for negative reviews; a proposed order would require it to dismiss with prejudice a lawsuit count against a renter.

## Threats and weak lawsuits can backfire

### The FTC review rule and legal threats

Section 465.7 of the FTC's rule on consumer reviews treats an unfounded or groundless legal threat or intimidation used to stop or remove a review as an unfair or deceptive practice; see our overview of the [FTC rule on fake reviews](https://brandprotecto.com/blog/ftc-fake-reviews-rule) .

### Anti-SLAPP laws

Some states have anti-SLAPP laws that let a defendant ask for early dismissal of a lawsuit over protected speech. Washington, for example, has adopted the [Uniform Public Expression Protection Act (RCW 4.105)](https://app.leg.wa.gov/RCW/default.aspx?cite=4.105&full=true) . It covers claims based on the exercise of free speech on a matter of public concern. Other proceedings between the parties are stayed from the giving of notice of intent to file the motion or the filing of the motion, whichever comes first; the court must dismiss with prejudice where the act's conditions are met; and a defendant who wins the motion is awarded costs and reasonable attorney fees. The chapter excludes several kinds of claims, including any claim brought under federal law and claims under the state consumer protection act, although it brings some excluded claims, consumer protection act claims among them, back within its scope when the action relates to consumer opinions or reviews or ratings of businesses. Whether a particular review counts as speech on a matter of public concern depends on the state's law and the facts.

### Publicity

A lawsuit is usually a public record. Suing a customer can draw more attention to the complaint than the review itself, and the case may be discussed long after the review would have been forgotten.

## When it may be worth talking to a lawyer

Legal advice makes sense when a review goes beyond opinion and you have evidence. Typical situations include:

- a review states specific facts that your records clearly contradict and that cause real harm;
- the author does not appear to be a customer at all, for example a suspected competitor (see [what to do if a competitor leaves fake reviews](https://brandprotecto.com/blog/competitor-fake-reviews) );
- the content discloses trade secrets or someone's private information;
- a sustained campaign of false statements continues after platform reports have been decided.

To make a first meeting with a lawyer useful, bring a short file:

- copies of the review, the reviewer profile and any replies, with dates and URLs;
- a timeline of the transaction and every contact with the reviewer;
- the records that show which statements are false;
- the outcome of any platform reports or legal removal requests;
- concrete evidence of harm, such as canceled bookings that refer to the review.

A clear file lets the lawyer tell you quickly whether there is a claim worth pursuing, or whether a reply and a platform report are the better route.

## Steps to take before any legal action

- **Preserve evidence.** Save screenshots with the date and URL, the reviewer's public profile and your internal records about the transaction.
- **Check the facts internally.** Ask the staff involved what happened before deciding the review is false.
- **Reply publicly and calmly.** Correct facts without personal attacks or private details; our guide on [how to respond to negative Google reviews](https://brandprotecto.com/blog/how-to-respond-to-negative-google-reviews) explains the approach.
- **Offer a private conversation.** Many disputes end when the customer feels heard.
- **Report policy violations to the platform.** Use the reasons the platform actually lists, not the fact that the review is negative.
- **Get legal advice before any formal step.** Ask a lawyer whether any formal step makes sense; a demand letter is not a default step and can backfire.

Example (illustrative): Thank you for your feedback, [Name]. We take billing questions seriously, and our records do not show a second charge for this visit. We would like to look into it with you directly; please contact [manager's email] so we can go through your statement together.

## Frequently asked questions

### Is a negative review defamation?

Usually not. A negative review that expresses opinion or describes a true experience is generally protected. Defamation requires a false statement of fact, and the Supreme Court in Milkovich v. Lorain Journal Co. focused on whether a statement can be proved true or false. Elements and defenses vary by state, so a qualified lawyer in your jurisdiction should assess any specific review.

### Can I sue Google or Yelp over a review someone posted?

Section 230(c)(1) of the Communications Decency Act says a provider of an interactive computer service shall not be treated as the publisher or speaker of information provided by another content provider. In practice, the reviewer rather than the platform is usually the potential defendant. Platforms still remove content that breaks their policies or that they find unlawful through their legal channels.

### Can my terms of service forbid customers from posting negative reviews?

No, not in a form contract. The Consumer Review Fairness Act voids form-contract provisions that prohibit or restrict reviews, impose penalties or fees for them, or require customers to transfer intellectual property rights in their reviews, and it makes offering such contracts unlawful. The FTC and state attorneys general enforce it. Employment and independent contractor contracts are excluded.

### Should I send a reviewer a cease and desist letter?

Ask a lawyer whether any formal step makes sense; a demand letter is not a default step and can backfire. The FTC's rule on consumer reviews makes it an unfair or deceptive practice to use an unfounded or groundless legal threat or intimidation to prevent or remove a review. This is general information, not legal advice.

## Sources

- [Milkovich v. Lorain Journal Co., 497 U.S. 1 (1990) — Legal Information Institute, Cornell Law School](https://www.law.cornell.edu/supremecourt/text/497/1) (checked October 28, 2026)
- [47 U.S. Code § 230 — Protection for private blocking and screening of offensive material — Legal Information Institute, Cornell Law School](https://www.law.cornell.edu/uscode/text/47/230) (checked October 28, 2026)
- [15 U.S. Code § 45b — Consumer review protection — Legal Information Institute, Cornell Law School](https://www.law.cornell.edu/uscode/text/15/45b) (checked October 28, 2026)
- [Consumer Review Fairness Act: What Businesses Need to Know — Federal Trade Commission](https://www.ftc.gov/business-guidance/resources/consumer-review-fairness-act-what-businesses-need-know) (checked October 28, 2026)
- [FTC Announces First Actions Exclusively Enforcing the Consumer Review Fairness Act — Federal Trade Commission](https://www.ftc.gov/news-events/news/press-releases/2019/05/ftc-announces-first-actions-exclusively-enforcing-consumer-review-fairness-act) (checked October 28, 2026)
- [FTC Announces Two Actions Enforcing the Consumer Review Fairness Act — Federal Trade Commission](https://www.ftc.gov/news-events/news/press-releases/2019/06/ftc-announces-two-actions-enforcing-consumer-review-fairness-act) (checked October 28, 2026)
- [Report Content for Legal Reasons — Legal Help — Google](https://support.google.com/legal/answer/3110420?hl=en) (checked October 28, 2026)
- [Chapter 4.105 RCW — Uniform Public Expression Protection Act — Washington State Legislature](https://app.leg.wa.gov/RCW/default.aspx?cite=4.105&full=true) (checked October 28, 2026)

Prepared by the BRANDprotecto editorial team with AI assistance and checked against the sources above. Platform rules and laws change: always confirm the current wording at the source. This article is general information, not legal advice.

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