London Daily

Focus on the big picture.
Monday, Mar 30, 2026

Bad online reviews can cost businesses hundreds of thousands of dollars - now they want to make you pay

Bad online reviews can cost businesses hundreds of thousands of dollars - now they want to make you pay

Online giants Google and Facebook are likely to face further court orders forcing them to identify people behind potentially defamatory statements made on their sites, lawyers warn.

But experts argue the companies are unlikely to self-regulate and change policies to reveal user identities without court orders.

Last week, a Melbourne dentist who claimed he was defamed in an anonymous online review convinced a Federal Court judge to order Google to unmask the disgruntled customer.

Dr Matthew Kabbabe claimed the potentially defamatory reviews, written under a pseudonym "CBsm 23", had cost him a significant amount of money.

After Google refused to identify the reviewer, Dr Kabbabe went to court and succeeded in getting an order that now forces Google to identify the reviewer so that Dr Kabbabe can launch legal action if he chooses to.

Class action against 'wild, wild west' Google


The dentist's lawyer Mark Stanarevic said that the tech giants were failing to adequately self-regulate and that his law firm, Matrix Legal, is now looking to launch a class action against Google on behalf of businesses potentially defamed in reviews.


Matrix Legal's Mark Stanarevic says the firm will launch a class action against Google in four to six weeks.


"We are arguing there is a duty of care and misleading conduct," he said, adding that the class action would involve about a dozen small businesses and would be launched within four to six weeks.

"Where Google has clearly failed is, not only are these profiles a breach of Google's own terms and conditions, but when someone self-reports and says this is not a proper review, they [Google] should not let those reviews remain for months."

He said anonymous profiles "could be quite easily picked up" if Google and Facebook invested time and effort to reveal fake or malicious reviewers.

He said he hoped the outcome of the possible class action would be damages for small businesses that have suffered because of Google's actions to date.

"They [Google] have failed the businesses," he said.

"They have the technology and money to fix these problems. They have the intellectual capability, but they are operating like they are in the wild, wild west."



"We're saying, they aren't investing — they are letting Australian businesses suffer. They need to prevent anonymous malicious targeting."

People posting anonymously can be found out


Some plaintiffs have already succeeded with defamation cases against reviewers through the courts.

In early February, Adelaide lawyer Gorden Cheng won a $750,000 defamation payout against a woman who gave his firm a bad review on Google.

Mr Cheng told the court he lost about 80 per cent of his clients between the bad review and when a former client made him aware of it in February 2019.

Online companies are taking the view that they will not disclose the names of those posting offensive material unless there is a court order, according to Minter Ellison partner Peter Bartlett.

But he believes there are many more court orders on the way.

"I think you'll find far more applications to the court ordering the online platforms to disclose who is the author of these allegedly defamatory posts," Mr Bartlett said.

This is not an issue of free speech, he says. Individuals anonymously posting on social media often push boundaries which they would not do if they were identifiable.

"We strongly believe in freedom of speech, but there's a difference when people are posting highly damaging material anonymously," he said.


"People tend to take the view that what they post on social media is similar to a telephone call — they seem to assume there's no real record of it and they can't really get into trouble.

"But there has to be a strong argument for someone damaged by a defamatory post to be able to ascertain who posted that review and take action against them if appropriate."

Clayton Utz partner Ian Bloemendal says people who post defamatory statements anonymously and claim it as free speech are "foolish".

"It's an unreal world view, that you have a right to say what you like online and there are no consequences," he said.

"There very much are consequences. If you defame anyone on social media, watch out — more and more people will pursue you and can find you out."


Adelaide lawyer Gordon Cheng.



Google, Facebook opt not to identify users


Mr Bartlett believes there is "certainly an argument" in favour of online companies changing their policies.

But he says the situation in Australia is further complicated by the fact that most of the big online companies are based in the United States.

"Even with a court order, no US court will recognise an Australian judgment ordering damages for defamation because of their different regime," Mr Bartlett said.

"It's very difficult for an individual to sue successfully for defamation in the United States because of the First Amendment."


A recent decision in the Dylan Voller defamation case shifted the way local media organisations moderate comments on their Facebook page.

Mr Voller brought a civil case against Fairfax Media, Nationwide News and Sky News over user comments made in reply to articles posted to Facebook between July 2016 and June 2017, and the judge found that the media organisations could have chosen to monitor or hide the comments.


The decision in the Dylan Voller defamation case shifted the way local media organisations moderate comments on their Facebook pages.


Mr Bloemendal also believes the online companies will comply with court orders but will be unlikely to change their policies regarding the anonymity of people posting.

To date the companies themselves have not been held liable for the posts, he says.

"Google and Facebook have billions of things going across [their platforms] each day — it's going to be very difficult to make out a case that they should be practically policing each case that comes across as defamatory," Mr Bloemendal said.

"They [the companies] would argue that they just provide a platform, and people who operate the pages are the people that plaintiffs normally look to [sue in defamation cases]."


Mr Bartlett says there are other instances where a person concerned about a defamatory post has obtained an injunction from the court to prevent further posts.

"Where that person continues the defamatory posts, they could be in contempt of court and face the consequences," he said, without naming the case.

Newsletter

Related Articles

0:00
0:00
Close
Starmer Signals UK Crackdown on Addictive Social Media Features
Rising Costs Push One in Five UK Hospitality Businesses to the Brink of Closure
Man Arrested on Suspicion of Attempted Murder After Car Strikes Pedestrians in UK, Injuring Seven
Escalating Conflict Involving Iran Tightens Fiscal Pressures and Highlights UK Economic Vulnerabilities
UK Moves to Confront Russian ‘Shadow Fleet’ Operating in Its Waters
UK Housing Divide Deepens as Older Owners Hold Wealth While Under-30s Face Mounting Barriers
London Demonstration Calls on UK to Recognize Iranian Opposition’s Provisional Government
UK Green Party Vote on ‘Zionism is Racism’ Motion Collapses Amid Internal Disputes and Technical Failures
SNL UK Ignites Debate with Sharp Royal Satire Targeting Prince Andrew and Prince William
EU Proposes ‘Emergency Brake’ to Resolve Deadlock in UK Youth Mobility Talks
Thousands Rally in London to Oppose Rise of Far-Right Movements
Hong Kong Official Rejects Allegations of Surveillance Orders Targeting UK-Based Dissidents
PayPal Expands Cryptocurrency Services to Allow UK Users to Buy and Sell Bitcoin
UK Minister Challenges Reform Party’s ‘Pro-Family’ Agenda as Debate Intensifies
Concerns Grow Over Meningitis Risk Among UK Students Amid Warning Signs of New Outbreaks
Japanese Grand Prix 2026: Schedule, UK Start Times and Full Broadcast Details
Electric Vehicles Seen as Strategic Solution to UK Fuel Reserve Concerns
Rise of Lone-Actor Threats and Online Radicalisation Drives New Wave of Antisemitic Attacks in the UK
Canada Advances Plan to Ban Cryptocurrency Donations in Election Campaigns
UK Faces Looming Medicine Shortages as Iran Conflict Threatens Supply Chains
Deadly Meningitis Outbreak in the U.K. Highlights Urgent Need for Vaccination
Fresh Claims Emerge Over Harry and Meghan’s Australia Visit as Insider Speaks Out
NATO Assessment Indicates UK Defence Spending Has Fallen Below Alliance Average
FTSE 100 Slips as Middle East Tensions Weigh on Investor Sentiment
UK Economy Begins to Feel Early Impact of Iran Conflict as Policy Challenges Intensify
Russian National Jailed in UK After Assault Case Linked to Barron Trump’s Alert
Energy Price Surge Accelerates Shift Away from Fossil Fuels in UK Homes
UK Museums House More Than 260,000 Human Remains, New Report Reveals
Surging UK Gilt Yields Reflect Inflation Pressures and Fiscal Uncertainty
UK Issues Updated Guidance on Children’s Screen Time with Focus on Balance and Wellbeing
UK Migration Figures Show Shifting Trends Across Asylum, Visas and Channel Crossings
UK Watchdog Launches Probe into Five Firms Over Alleged Fake Reviews and Ratings
Jaguar Land Rover Halts Production at UK Plant Amid Supplier Disruption
UK Police Reverse Position, Confirm Arrests Will Resume for Palestine Action Protests
UK Small Businesses Face Europe’s Steepest Cost Pressures, New Survey Reveals
US Envoy Urges UK to Proceed with King’s Visit Amid Diplomatic Sensitivities
FTSE 100 Drops Over One Percent as Middle East Tensions Weigh on Markets
UK CO2 Plant Set to Reopen as Authorities Move to Safeguard Supplies Amid Middle East Tensions
Trump Urges Stronger Defence Investment as He Questions Allied Naval Capabilities
New COVID Variant Detected in UK Raises Concerns Over Vaccine Effectiveness
FTSE Russell Moves to Standardise Free-Float Rules for UK and International Listings
HBO Max Launches in UK and Ireland, Marking Major Step in Global Streaming Expansion
UK Signals Readiness to Seize Russian ‘Shadow Fleet’ Vessels in Escalation of Sanctions Enforcement
Escalating Middle East Conflict Seen as Major Threat to UK Economic Stability
Early Challenges Mark Prince Harry and Meghan’s Australia Visit
UK Government Rejects Cover-Up Claims After Theft of Former PM Aide’s Phone
Cyprus Opens Strategic Talks with UK Over Sovereign Base Areas
UK Faces Risk of Sharp Inflation Surge Despite Stable Pre-Crisis Figures
UK Police Arrest Two Over Suspected Antisemitic Arson as Iran Link Investigated
UK Inflation Holds at Three Percent Ahead of Oil Price Shock from Iran Conflict
×