Yelp Review Lawsuit Dismissed: When is a Bad Review Defamation?

Online reviews have become a ubiquitous part of modern life. We rely on them to choose restaurants, find reliable service providers, and make informed purchasing decisions. Platforms like Yelp, Google Reviews, and TripAdvisor have given consumers a powerful voice, but this power comes with responsibility. While expressing your opinion is a protected right, there’s a line between sharing a negative experience and making defamatory statements. When a review crosses that line, it can lead to legal action. So, when is a bad review considered defamation, and what are the potential consequences?

The Power and Peril of Online Reviews

Online reviews significantly impact businesses. A positive review can boost a company’s reputation and attract new customers, while a negative one can deter potential clients and damage their bottom line. According to a 2025 report, about 244 million reviews were available on Yelp alone. Given the weight these reviews carry, it’s no surprise that businesses are keen to protect their online reputation.

However, businesses must also respect the consumer’s right to free speech. The First Amendment protects the right to express opinions, even if those opinions are critical. This creates a delicate balance between protecting a business’s reputation and safeguarding freedom of speech.

What is Defamation?

Defamation is a legal claim that allows individuals or businesses to recover damages for harm caused to their reputation by false statements. Defamation can be either spoken (slander) or written (libel). Online reviews typically fall under libel because they are written and published.

To establish a defamation claim, a plaintiff generally needs to prove the following elements:

A false statement: The statement must be untrue. Opinions, even if negative, are generally not considered defamatory because they cannot be proven false.
Publication: The statement must be communicated to a third party. Posting a review online satisfies this requirement.
Harm: The statement must cause harm to the plaintiff’s reputation or business. This can include loss of customers, revenue, or trust.
Unprivileged: The statement must not be protected by any privilege, such as statements made in court or during legislative proceedings.
Fault: The person making the statement must have been at fault, meaning they knew the statement was false or acted with reckless disregard for its truth.

Opinion vs. Fact: The Key Distinction

The most critical factor in determining whether a bad review is defamatory is whether it expresses an opinion or a statement of fact. Opinions are generally protected, while false statements of fact are not.

Opinion: An opinion is a statement that reflects a person’s beliefs, feelings, or judgments. For example, “The food was terrible,” or “The service was slow.” These statements are subjective and cannot be proven true or false.
Fact: A statement of fact is something that can be verified as true or false. For example, “The restaurant served me expired food,” or “The waiter stole my credit card.”

The line between opinion and fact can sometimes be blurry. Courts consider the context of the statement and whether a reasonable person would interpret it as an assertion of fact. For instance, calling someone a “con artist” or saying they “rob” customers implies criminal behavior and is more likely to be considered a statement of fact.

Defamation Per Se

Some statements are considered so inherently damaging that they are deemed “defamation per se.” In these cases, the plaintiff doesn’t need to prove they were actually harmed; damages are presumed. Examples of defamation per se include statements that:

Accuse someone of committing a crime.
Imply someone has a loathsome disease.
Negatively affect a person’s ability to perform their job.

If a Yelp review contains statements that fall into one of these categories, it’s more likely to be considered defamatory.

The Role of “Actual Malice”

In some cases, particularly when the plaintiff is a public figure, they must prove “actual malice.” This means the reviewer knew the statement was false or acted with reckless disregard for whether it was true. This is a higher standard of proof than simple negligence, making it more difficult for public figures to win defamation cases.

Defenses Against Defamation Claims

Even if a review contains false statements of fact, the reviewer may have certain defenses against a defamation claim. Some common defenses include:

Truth: Truth is an absolute defense to defamation. If the statement is true, it cannot be defamatory, even if it harms the plaintiff’s reputation.
Opinion: As mentioned earlier, statements of opinion are generally protected.
Privilege: Certain statements are protected by privilege, such as statements made in court or during legislative proceedings.
Fair comment: This privilege protects fair and honest criticism on matters of public interest.

Can You Sue Yelp?

Generally, you cannot sue Yelp for defamation based on user reviews. Section 230 of the Communications Decency Act of 1996 immunizes internet platforms from liability for content posted by third parties. This means that Yelp is not responsible for the reviews posted by its users, even if those reviews are defamatory.

However, you can sue the person who posted the defamatory review, provided you can identify them.

What Can Businesses Do About Bad Reviews?

While businesses can’t always sue over negative reviews, there are other steps they can take to protect their reputation:

Respond professionally: Address the reviewer’s concerns and try to resolve the issue. A thoughtful response can show potential customers that you care about their experience.
Request removal: If the review violates Yelp’s terms of service or contains demonstrably false information, you can request that Yelp remove it.
Encourage positive reviews: Encourage satisfied customers to leave positive reviews to balance out the negative ones.
Seek legal counsel: If you believe a review is defamatory, consult with an attorney to discuss your legal options.

Real-World Examples

Several cases highlight the complexities of defamation claims related to online reviews:

Hassell v. Bird: The California Supreme Court ruled that Yelp did not have to remove defamatory posts, citing Section 230 of the Communications Decency Act.
Wong v. Tai Jing: A dentist sued parents for posting a negative Yelp review, alleging the review contained false and defamatory statements. The court analyzed the content of the review and determined that some statements were indeed defamatory.
North Wind Heating and Cooling v. Agostino: A Michigan company sued a customer for leaving a bad review on Yelp, alleging the statements were false and cost the company business.

These cases demonstrate that whether a bad review constitutes defamation depends on the specific facts and circumstances.

The Bottom Line

Navigating the world of online reviews requires a delicate balance. While consumers have the right to express their opinions, they must do so responsibly and avoid making false statements of fact that could harm a business’s reputation. Businesses, in turn, should focus on providing excellent customer service and addressing negative feedback constructively.

If you believe you have been defamed by an online review, or if you are a reviewer facing a defamation claim, it’s essential to seek legal advice from an experienced attorney. Understanding your rights and obligations is crucial in protecting your reputation and avoiding costly legal battles.

If you have concerns about a potentially defamatory review, contact our firm today for a consultation. We can help you assess your options and take appropriate action to protect your interests.