Business defamation is a legal category involving the infringement of a company's or entrepreneur's business reputation through the dissemination of false facts. In the modern digital age, where information spreads at lightning speed, defamation directed against a business can lead to catastrophic financial consequences, loss of customer trust, and a reduction in market share. Unlike the defamation of a natural person's honor and dignity, business defamation is directly linked to material damage and the destruction of goodwill. In Georgia, competition often exceeds ethical boundaries, and unscrupulous competitors or dissatisfied parties resort to spreading disinformation. Protecting against such actions requires a rapid, strict, and legally sound response to stop the spread of false information and compensate for the damage caused.
What does the Business Defamation service cover?
Legal services aimed against business defamation are a complex process involving both preventive and punitive measures. Specialists perform the following actions:
- Legal Analysis of Statements: Evaluating the disseminated information—is it a statement of fact (which can be verified) or a personal opinion (which is protected by freedom of speech).
- Securing Evidence: Notarization or forensic examination of digital footprints, articles, videos, or social media posts so they can be used in court.
- Sending Cease and Desist Letters: An official demand to the disseminator of information to stop the defamation and retract false reports before litigation.
- Damage Calculation: Calculating financial losses and lost profits in conjunction with auditors.
- Court Representation: Preparing a lawsuit demanding retraction of the defamation and compensation for damages.
Common Scenarios and Needs
Businesses need legal protection in various crisis situations:
- Competitor Black PR: When a rival company spreads false rumors about the poor quality of your products or financial problems.
- Revenge of Former Employees: A dismissed employee spreading confidential or false information on social networks to tarnish the company's image.
- Media Attacks: Media outlets circulating unverified facts that damage the company's brand.
- Fake Consumer Reviews: Targeted negative campaigns on Google Reviews or Facebook by non-existent clients.
Georgian Legislation and Regulations
Business defamation in Georgia is primarily regulated by the Civil Code of Georgia and the Law of Georgia on Freedom of Speech and Expression. Article 18 of the Civil Code protects the honor, dignity, and business reputation of a person (including legal entities). The Law on Freedom of Speech sets a high standard: the plaintiff must prove that the disseminated information is a substantially false fact and not an opinion. It is also important that, unlike a private individual, the threshold for tolerance is higher for public figures or large companies. Additionally, the Law of Georgia on Competition prohibits unfair competition, which also includes tarnishing a competitor's reputation.
Step-by-Step Process
The process begins with detailed monitoring and analysis. The lawyer assesses whether the statement contains signs of defamation. Then, irrefutable evidence is secured (for example, a website inspection protocol). This is followed by a negotiation stage—a demand to delete and retract the information. If no result is achieved, a lawsuit is prepared. In court, the main task is to prove that the disseminated information is a fact (not an opinion), it is false, and it caused real damage. Enforcement of the decision implies retracting the information through the same means by which it was disseminated.
Why Legal.ge?
Legal.ge is a platform connecting you with top specialists in media law and corporate reputation defense. Defamation cases require specific knowledge to draw the line between freedom of speech and reputation infringement. Our lawyers will help you not only in litigation but also in crisis communication to minimize the damage to your business. Protect your company's name with Legal.ge professionals.
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