What You Need to Know About the Legal Risks of Online Reviews in 2025

In today’s digital age, online reviews play a critical role in shaping consumer decisions. Whether it's purchasing a product, choosing a service, or even selecting a restaurant for dinner, potential customers often turn to the opinions of others shared online. However, this phenomenon has given rise to significant legal concerns for both consumers and businesses alike. As we move further into 2025, understanding the legal risks associated with online reviews has never been more important.

The primary legal issue surrounding online reviews is defamation. Defamation occurs when a statement is made that harms the reputation of an individual or business. While consumers enjoy the freedom to express opinions, there is a fine line between sharing an honest experience and making statements that could potentially harm a business without foundation. In many jurisdictions, publishing false or misleading reviews can expose individuals to lawsuits for defamation. The implications are serious, as businesses rely heavily on their online reputation to attract and retain customers. In the UK, for instance, businesses have successfully pursued defamation lawsuits against individuals who posted reviews containing false claims about their services or products. One notable case involved a restaurant in London that sued a customer for posting a fraudulent review accusing them of food poisoning. The case, though settled out of court, served as a strong reminder of the legal risks that online reviews can carry.

The rise of fake reviews also poses significant challenges in the digital marketplace. Fake reviews, whether positive or negative, can damage a business’s reputation and mislead potential customers. In many countries, including the UK and the US, posting fake reviews or soliciting them is illegal. In 2020, the UK’s Competition and Markets Authority (CMA) investigated several companies for publishing fake reviews. These companies faced fines and legal action for misrepresenting their products and services to consumers. The CMA now enforces stricter regulations on the authenticity of reviews, ensuring that businesses who engage in fraudulent review practices face severe penalties. This is a vital issue, as consumers increasingly rely on reviews to make purchasing decisions, and businesses are being held accountable for ensuring the integrity of the reviews they solicit.

Another significant issue is the rise of revenge reviews, which often stem from personal grievances. In some cases, customers leave negative reviews out of spite, regardless of the actual experience. This has led to a growing trend in legal action. In the US, several states have introduced legislation that allows businesses to take legal action against customers who post malicious, retaliatory reviews. A notable case in California saw a business owner successfully obtain a court order to have a negative review removed after it was determined to be unjust and retaliatory. While these cases remain relatively rare, they reflect the growing recognition of the potential harm that such reviews can cause.

However, it’s not just businesses that need to be cautious; consumers also have legal rights when it comes to leaving online reviews. Most importantly, freedom of speech protects the rights of consumers to share their experiences. But, just as businesses are protected from false and defamatory claims, consumers must also ensure that their reviews are truthful and based on actual experiences. Many countries, including Australia and Canada, have clear laws stating that consumers cannot make defamatory or misleading claims in reviews. If a review is proven to be false, the reviewer can be sued for defamation, even if the intention was to provide constructive criticism. Consumers need to understand that while they are free to express their opinions, these opinions cannot be presented as facts when they are not.

The legal landscape surrounding online reviews is complex, and businesses must stay vigilant in protecting themselves from potential legal pitfalls. One area that is particularly fraught with legal complexities is the use of reviews posted directly on a business’s own website. Many businesses now feature testimonials and customer reviews on their own platforms, claiming them as an important part of their marketing strategy. While these reviews can boost customer confidence, they can also create legal risks if they’re not handled appropriately.

The main legal issue businesses face when posting reviews on their own websites is the risk of misrepresentation. For example, some businesses may cherry-pick only the most positive reviews, giving a skewed impression of their products or services. This could lead to claims of false advertising or unfair trading practices, especially if customers feel misled by the reviews. In some jurisdictions, businesses are required by law to ensure that reviews published on their websites are authentic and representative of the customer base. In the UK, the CMA has provided guidelines for businesses to follow when displaying reviews, emphasizing that companies must not manipulate or misrepresent customer opinions.

Moreover, businesses that allow customer reviews on their websites must also consider the moderation process. If businesses censor or delete reviews that they find unfavorable, they could face legal backlash. In some cases, removing negative reviews could be seen as an attempt to mislead potential customers, especially if the negative feedback is justified. For instance, a business that deletes negative reviews to present a falsely glowing reputation might be liable for deceptive marketing practices. In the US, the Federal Trade Commission (FTC) has issued guidelines that mandate businesses to avoid false or misleading advertising, which includes displaying biased or manipulated reviews.

To protect themselves legally, businesses must ensure that the reviews on their websites are accurate, unbiased, and genuine. Many businesses are opting for third-party review platforms to collect testimonials rather than hosting them directly on their site, as this provides an added layer of transparency and credibility. By using independent platforms, businesses can avoid the appearance of manipulating or selectively publishing reviews. For example, platforms like Trustpilot and Yelp offer businesses a way to showcase reviews without directly controlling or influencing the content, which helps to avoid potential legal disputes.

On the other side of the spectrum, consumers must be aware of their legal rights when posting online reviews. In some jurisdictions, review platforms such as Trustpilot or Google Reviews offer protections for reviewers, ensuring that individuals are not unjustly penalized for sharing their experiences. However, platforms also reserve the right to remove reviews that violate their terms of service, such as those that contain personal attacks, hate speech, or misleading information. Consumers should always ensure that their reviews are grounded in fact and that they are providing truthful accounts of their experiences to avoid legal consequences.

As we enter 2025, the landscape for online reviews is evolving, and the legal implications are becoming more pronounced. Governments around the world, from the UK to Nigeria, are strengthening laws that regulate online behavior, including the publication of reviews. In Nigeria, for instance, the Consumer Protection Council has implemented measures to protect both businesses and consumers from fraudulent online activities, including false reviews. These regulations aim to create a fairer, more transparent environment for both businesses and customers alike. Meanwhile, in the United States, the Federal Trade Commission (FTC) continues to enforce guidelines around endorsements and testimonials to ensure that reviews are authentic and not misleading.

Looking Ahead: The Future of Online Review Laws

Several trends could shape the future legal landscape of online reviews. With consumer protection on the rise, lawmakers may introduce more stringent regulations concerning the authenticity of online reviews. Businesses need to understand and prepare for compliance to protect their reputations.

The growing influence of online reviews presents both opportunities and risks for businesses and consumers alike. Understanding the legal landscape surrounding online reviews is crucial for avoiding defamation claims, protecting personal reputations, and ensuring that the reviews we read are truthful. As the world continues to navigate the complexities of digital communication, both businesses and consumers must be aware of the power that online reviews hold and the legal consequences that can arise from misuse. By staying informed and adhering to legal guidelines, we can all participate in the online review ecosystem responsibly and fairly.

The views expressed on this website are provided solely for general informational reasons and are not intended to be relied upon as legal advice.