Brands Sue For Online Criticism

It's the dream of many a brand manager, and now it appears it is coming true. After years of consumer comments on websites and social networks criticizing brands, companies are now fighting back, with lawsuits.

The New York Times tells the story of T&J Towing, which is suing a consumer who created a Facebook page slamming the brand. T&J claims the page hurt the brand and its business and it is seeking damages of $750,000.

"Cease and desist" emails from the legal department may have spooked Internet users long ago, but it's no longer the case. As fun as suing slanderous consumers into the ground might sound, the Times piece notes that many lawyers are worried the new popularity of brand defamation lawsuits will become just a new version of strategic lawsuit against public participation. With so many brands crowdsourcing and community-building, playing the heavy could deter other users.

There is valid concern about a lawsuit drawing even more attention to a brand-harming site and making the suing brand appear to be a bully. Last year, property realty company Horizon made a name for itself when it slapped a $50,000 lawsuit on a Twitter user for criticizing the brand in a single Tweet… to just 20 of his followers.  Meanwhile, Samsung's recent lawsuit of a journalist over a satirical piece made the brand out to be something of a humorless bulldozer. 

Finally, there is the risk of losing such a lawsuit. Such an outcome will almost certainly make the online accusations appear true and may do far more damage to a brand than ignoring the comments ever would.

For more, see our earlier breakdown of how brands should handle online criticism, and let us know how you think a brand should respond to public criticism.