Arab Press

بالشعب و للشعب
Sunday, Apr 26, 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

Arab Press
0:00
0:00
Close
News Roundup
Strategic Saudi-Bahrain Causeway Closed Amid Security Concerns as Trump Deadline Approaches
Saudi Arabia Keeps Red Sea Oil Exports Flowing Despite Regional Tensions
Pipeline Attack Cuts Significant Share of Saudi Arabia’s Oil Export Capacity
Saudi Business Leader Abudawood Appointed Chairman of Merit Incentives Group
TotalEnergies Confirms Damage at Saudi Refinery Following Security Incident
Saudi Arabia Launches Early Construction Phase for King Salman Stadium Project
Saudi Shift Away from Longstanding Dollar Oil Framework Gains Attention Amid Iran Conflict
Türkiye and Saudi Arabia Resolve Long-Running Transit Visa Dispute
Saudi Oil Capacity and Pipeline Flows Reduced as Supply Risks Intensify
TotalEnergies Reports Damage to Saudi SATORP Refinery Following Security Incidents
Gulf States Assess Prospects of U.S.-Iran Truce as Regional Stability Efforts Intensify
South Korea Resumes Honey Exports to Saudi Arabia Following Sanitary Approval
Saudi Arabia Carries Out Sentences in Eastern Province Following Security Convictions
Saudi Sovereign Wealth Fund Backs King Street’s Regional Credit Strategy
Saudi Arabia Secures World Cup Return as Egypt Celebrates Landmark Qualification
Iran and Saudi Arabia Intensify Diplomatic Engagement Amid Regional Tensions
Russia and Saudi Arabia Open Visa-Free Travel Corridor for Citizens
Saudi Oil Output Capacity Reduced by 600,000 Barrels Per Day Amid Regional Conflict
Saudi Arabia Suspends Operations at Select Energy Sites as Precautionary Measure
Saudi Arabia Halts Operations at Multiple Energy Facilities Amid Heightened Tensions
Global Markets Jolt as Iran Signals Ceasefire Breakdown and Rising Regional Tensions
King Street Aligns with Saudi Sovereign Wealth Fund to Expand Alternative Investments in Middle East
Attack on Saudi Arabia’s Jubail Petrochemical Hub Raises Global Supply Concerns
Debate Emerges Over Saudi Strategic Decisions as Gulf Cooperation Council Dynamics Come Into Focus
Saudi Arabia Expands Full Workforce Localisation to 69 Professions in Major Labour Reform
Emerging Alliance of Pakistan, Turkey, Egypt and Saudi Arabia Signals New Regional Power Dynamic Amid Iran Conflict
Iran Linked to Strikes Across Gulf States Following Refinery Attack Escalation
Saudi Arabia Voices Concern Over Fragile US–Iran Ceasefire Stability
Starmer Warns Sustained Effort Needed to Ensure US–Iran Ceasefire Holds
Saudi Arabia’s Key East-West Oil Pipeline Targeted Following Ceasefire Announcement
Iran Targets Saudi Arabia’s East-West Oil Pipeline in Escalating Regional Tensions
Trump Warns of Civilizational Stakes as Iran Halts Negotiations
Saudi Companies Expand Remote Work Measures Ahead of Iran-Related Security Concerns
Iran Warns of Strikes on Saudi Energy Infrastructure if US Targets Its Facilities
Iran Urges Civilians to Form Human Shields Around Nuclear Sites as Diplomatic Deadline Approaches
Saudi Arabia Raises Oil Prices to Record Premiums Amid Supply Pressures Linked to Iran Conflict
Key Saudi-Bahrain Causeway Closed Amid Heightened Security Concerns Linked to Iran
Formula One Calendar Gap Explained as Fans Await Next Grand Prix
Growing Strain on the Petrodollar System Comes Into Focus Amid Iran Conflict
Reported Strike on Saudi Arabia’s Jubail Complex Raises Global Energy Supply Concerns
FedEx Introduces New Digital Tool to Streamline Imports into Saudi Arabia
Iran Claims Strike on Saudi Arabia’s Jubail Petrochemical Complex Amid Rising Regional Tensions
Taiwan to Source Oil Shipments from Saudi Arabia’s Red Sea Ports
Saudi Arabia Evacuates Riyadh Financial District as Precaution Amid Regional Tensions
Saudi Arabia Balances Ambitious Economic Vision Amid Regional Tensions and Financial Pressures
Budget Saudi Arabia Reports Strong Full-Year 2025 Financial Performance
Saudi Arabia Expands Investment in Capcom With Stake Reaching Six Percent
Saudi Arabia Assesses Significant Economic Impact From Regional Conflict Involving Iran
US Beef Secures Expanded Market Access in Saudi Arabia
×