How To Deal With Negative Online Reviews

Let’s face it: reading negative reviews of your business online can be quite unsettling! 

As a business owner, you understand that negative reviews, whether they are fabricated or genuine, can tarnish the reputation of your business.

There are several laws and legal actions you should consider when you’re thinking of responding to negative reviews in New Zealand. Let’s explore what you need to know. 

Fake vs Genuine Reviews

Firstly, when you’re confronted with a negative online review, it’s crucial to determine whether the reviewer is an actual customer.

Depending on the size of your business, this may be a significant task. Many reviewers use pseudonyms, which complicates this process. 

If the identity of the reviewer is authentic, you should be able to correlate the review with your business records. Once you’ve ascertained whether the review is real or fake, you’ll be better positioned to address it. 

Dealing With Fake Reviews

If you’ve identified that a review is fake, there are steps you can take.

For instance, if it’s a Google review, you can go to the “Reviews” section in Google My Business and flag it as inappropriate. However, this action may not always result in the review being removed.

Another course of action is to lodge a complaint with the Commerce Commission of New Zealand. The Commission can then investigate the authenticity of the review and take suitable measures.

A Fake Negative Review Has Damaged My Business’ Reputation. Can I Get Compensation?

Seeking compensation for fake negative reviews through defamation laws is not straightforward, but it is possible.

There was a notable case in New Zealand where an Auckland businessman was awarded $270,000 in damages over a false Google review.

In this case, the businessman had never provided services to the reviewer, and the negative review was proven to be fabricated. The impact of the review was significant, leading to a loss of business and personal distress.

The court’s decision to award damages for lost income and emotional harm demonstrates that legal recourse is available for businesses affected by defamatory reviews.

If you encounter a similar situation, it might be prudent to seek legal advice to ensure your business can take appropriate legal action against the reviewer and safeguard your reputation.

Knowing that legal action is an option, you could attempt to resolve the issue with the reviewer by requesting the removal of the review. However, if that proves fruitless, pursuing further action might be necessary.

Responding to Genuine Negative Reviews

If a negative review is genuine, it’s advisable to respond with an apology for the customer’s unsatisfactory experience with your business. If feasible, offer a solution to their grievances — this may be all that is required to resolve the issue.

Express gratitude to the reviewer for their candour, acknowledge any positive aspects they mentioned, and inform them of any relevant changes made in response to their feedback. Actions like these can prevent the reviewer from further disparaging your business.

The ideal outcome is to offer a refund or exchange, which might prompt them to retract the negative review. Alternatively, engaging in a dialogue with the reviewer could lead to other resolutions that mitigate the review’s impact on your business. 

What To Take Away…

A negative review can induce stress and potentially financial harm to you and your business. 

If you find yourself on the receiving end of such a review, ascertain whether the review is genuine or fabricated, and take practical steps towards a resolution. Sometimes, consulting a lawyer is advisable to understand your legal options better.

If you need more information about how various types of online reviews can affect your business and what actions to take in response, you can reach us on 0800 002 184 or at [email protected].

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