Protecting Your Small Business from Online Reputation Attacks

In today’s digital-first economy, your online reputation is one of your most valuable business assets. Perhaps the most impactful expression of your online reputation are your customer reviews.  They say a lot about your business and are an influential factor in the purchase decision by people shopping for your products and services.  Statistics show that 92% of consumers are hesitant to buy from a business with no reviews, and a single one-star increase in your Yelp rating can lead to a 5% to 9% revenue boost.

For small business owners, however, this "social proof" is a double-edged sword. While positive reviews act as a collective guarantee of quality, a single coordinated attack or a malicious, false review can feel like an existential threat to your business.

But before you call your lawyer to "sue them for everything," it is critical to understand that the legal landscape changed significantly in 2024.

Here is what Pennsylvania small business owners need to know about navigating reputation attacks in 2026.

1. The Power of Response over Retaliation

The best defense against a negative review is often a professional, public response rather than a legal threat. Approximately 88% of consumers say they are more likely to use a business that responds to all reviews - positive and negative - compared to only 47% who consider businesses that stay silent.

Responding demonstrates that you are proactive and care about customer experience. It triggers the psychological phenomenon of "Social Proof," showing prospective customers that you are a real person committed to resolving issues.

2. Know the Guardrails: The Consumer Review Fairness Act (CRFA)

It may be tempting to "legalize" your way out of receiving bad reviews by including "non-disparagement" clauses in your standard customer contracts. However, federal law, specifically the Consumer Review Fairness Act (CRFA), makes it illegal to use form contracts that:

• Bar or restrict a consumer’s ability to leave an honest review.

• Impose a penalty or fee for leaving a negative review.

• Require consumers to give up intellectual property rights in their feedback.

Violating the CRFA can lead to significant financial penalties from the Federal Trade Commission (FTC). The law does, however, allow you to remove reviews that contain confidential information, trade secrets, or material that is clearly libelous, harassing, or sexually explicit.

3. Internal Threats: When Employees Turn

It is not uncommon for an attack to come from a current or former employee or independent contractor who has an axe to grind.  When a disgruntled former staffer who takes inside information to social media, we call it a “smear campaign”.  You have more weapons to defend these types of actions:

Employment Policies:

Include specific provisions in your employment policies that address online disparagement of the company.  These are consistent with the common-law duty of loyalty owed by employees to their employers.  These have the added extra benefit of giving you a good reason to oppose a former employee’s application for unemployment compensation benefits if they’ve violated your rules.

Contractual Protection:

Use Non-Disparagement clauses in contracts with independent contractors and in employment severance agreements.

4. Pennsylvania’s New Shield: The 2024 Anti-SLAPP Law (UPEPA)

The most significant change for Pennsylvania business owners is Act 72 of 2024, which adopted the Uniform Public Expression Protection Act (UPEPA).

A "SLAPP" (Strategic Lawsuit Against Public Participation) is a meritless lawsuit designed to silence critics by burying them in legal fees. As of July 2024, Pennsylvania law makes it much riskier for a business to sue over negative online reviews. Under Act 72:

• Early Dismissal: Defendants (the reviewers) can now file a special motion to dismiss a SLAPP suit at the very beginning of a case.

• The Burden Shift: Once a defendant shows their review involves a "matter of public concern," the business must quickly prove their claim has actual merit and that they sustained real damages.

• The "Fee Shift" Penalty: This is the most critical change. If a business sues over a review and loses under UPEPA, they may be forced to pay the reviewer’s attorney’s fees and legal costs.

4. Proactive Steps for 2026

Does all this mean that business owners are at the mercy of disgruntled former customers and employees?  Not exactly.  Given these new legal risks, your strategy should focus on being "proactive, not reactive":

Keep a Close Eye on Your Online Presence: 

What people say about your business online matters, and staying informed is your first line of defense. Regularly check key platforms like Google Business Profile, Yelp, Trustpilot, and industry-specific review sites.  Set up Google Alerts for your business name to catch negative mentions quickly.

Claim Your Digital Presence: 

Ensure you have control over your profiles on Google, Yelp, and industry-specific sites.  Claiming these listings allows you to ensure business details are accurate, including your name, address, phone number, and hours of operation. Unclaimed profiles often display outdated or incorrect information, which can make your business seem unreliable and drive customers away.

Respond to all Reviews: 

Respond to all reviews - positive and negative - with professionalism and courtesy.  When you fail to respond to reviews, it tells everyone that you don’t really care about your customers or their opinions of your services. That’s a bad look.  Report fake or suspicious reviews to the platform hosting them.  Engage with customers on your socials by answering questions and addressing concerns in a timely manner.

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Keep Your Cool: 

Never let emotions drive your response. Don’t engage in a "flame war" or use aggressive language that makes you look like the bully.  An angry reply can often do more damage than the original review itself (the "Streisand Effect"). A heavy-handed response can accidentally go viral and cause more damage than the original post.

Pick Your Battles: 

Every bad review or nasty comment on socials does not warrant a lawsuit.  There are several factors to consider before siccing your lawyer on an attacker.  Can you identify the attacker? How likely is it that their comments will be widely viewed by your customers?  If the comment appears on a Facebook page of some crank who has very few followers, who really cares about that? Have you attempted other means of blunting their comments?  Can you prove you’ve sustained actual (not speculative) damage to your business?  In most instances, I often find myself telling a victim of one of these attacks:  This too shall pass. 

Your online reputation is an asset to be managed, not a battlefield to be won through litigation alone. While there are still legal remedies for genuine defamation, the 2024 UPEPA changes mean that "intimidation by litigation" is no longer a viable or safe business strategy in Pennsylvania.

If you are facing a coordinated attack on your business’s reputation, consult with one of Fiffik Law Group’s experienced business attorneys to evaluate your options under the new law before taking action.