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Business reputations at risk as social networking and chatrooms increase the risk of defamation damage
29/Jul/2009

A statement which damages the reputation of an individual or a business is defamatory, and can have a serious, sometimes fatal, impact on a business.

As channels of communication expand with the exponential growth of the World Wide Web and the increasingly popular social networking sites such as Facebook, MySpace and Twitter, many businesses are now left increasingly exposed.

Solicitor Felicity Harrison, said: “The importance of understanding how easily defamatory comments can damage a firm’s reputation, profitability and even existence has never been more pertinent. That is why we have launched the Defamation Team, to help businesses understand and take steps to protect themselves and to respond to such threats.” 

Felicity said: “Defamation is not just restricted to the domain of Rock Stars, Footballers, Politicians and the tabloid press; it has implications for all individuals and any size or type of business.

“An increasing problem for businesses is that ex-employees and current employees openly criticise their employers in vitriolic attacks through social networking sites and chat rooms, and given the speed with which such messages now circulate the impact can be swift and extremely damaging”.

Emails sent by employees or statements made on a website chat room can also put a business at risk.

Felicity explained: “The last few years have seen a proliferation of emails with literally millions sent daily by individuals on behalf of their employer.  Businesses must be very careful as defamatory comments made in emails by staff generally lead to the business being held liable; whilst disclaimers at the end of the email provide some protection, it is limited.”

Felicity added: “Businesses also need to be watchful when developing their web-sites, particularly when inviting comment either through chat rooms, blogs or on specific issues.  If people post defamatory messages to such sites the business/website operator can be held responsible, depending on the circumstances and the processes that have been put in place; these should be carefully and regularly reviewed.

For more information about the new Defamation Team please call Felicity Harrison on 0845 129 2348.