What action can businesses take against defamatory reviews?
While businesses can take legal action against defamatory reviews, doing so is often difficult, lawyers warned.
Businesses must consider constraints including cost, time and difficulty of identifying anonymous reviewers, said Mr Tan.
“More importantly, the business will need to consider how its response will be viewed by members of the public in today's social media era," he said. "A perceived overtly aggressive response may cause more damage to the business' reputation, which could impact its bottom line.
BR Law director P Sivakumar and associate Paul Teh said evidential challenges also arise, as it can be difficult to verify whether a reviewer had patronised the business.
Beyond defamation claims, businesses may seek court orders under the Protection from Harassment Act (POHA) to stop the publication of false statements or require corrections.
“However, it would be difficult to take action if businesses cannot show that the statement of fact is false and cannot identify the person behind the review,” Mr Sivakumar and Mr Teh said.
Businesses may try approaching platforms like Google to remove such reviews, but it is unlikely that such platforms will do so in the absence of a court order, they added.
Mr Lee from Tito Issac and Co said that in most cases, "the smarter move" is not hiring a lawyer, but using the report button.
“Flagging fake reviews on the platform is faster, cheaper and avoids triggering the ‘Streisand effect’, which can draw even more attention to an already heated situation.”
Proving financial loss can also be difficult.
"A loss of sales of a business can be attributed to any number of reasons, such as drop of quality or popularity of the products, increased competition, increase in cost of supply," Mr Sivakumar and Mr Teh said.