In today’s digital landscape, online reviews can greatly influence the reputation of a business.  For small businesses in New Zealand, a single harmful or unfair review can have a disproportionate impact on them. Dealing with these negative reviews can be challenging for business owners but a damaging review is not generally something that can or should be ignored.  Understanding the legal options and responding assertively can assist.

Negative feedback usually comes with running a business but a grumpy customer, an angry phone call or a letter to the editor had limited reach. Today, a damaging Google review could reach thousands and haunt a business for some time. To give this context, would you consider booking a hotel if someone mentioned bed bugs or eating at a restaurant that has poor hygiene? Unlikely, but what if that review was written by someone with a grievance against the owner rather than a genuine experience? The balance between fact and fiction is key.

There are legal options if you find yourself on the receiving end of an exaggerated, false or misleading review. Here are some practical steps you can take to manage reviews that risk your businesses’ reputation.

1. Assess the nature of the review

Before taking any action, evaluate the review carefully:

• Is it negative but truthful? Opinions and genuine customer experiences—even if unfavourable—are generally lawful.
• Is it false or misleading? This may fall under New Zealand’s Fair Trading Act 1986, which prohibits misleading and deceptive conduct in trade.
• Is it defamatory? If the review harms your reputation and contains false statements presented as facts, it may be defamation under the Defamation Act 1992.

Understanding this distinction is key. The law doesn’t protect you from criticism, but it does protect against false statements that damage your reputation.

2. Respond calmly and professionally

Often, the best first step is a professional public response. This shows other customers that you’re reasonable and attentive:

• Acknowledge the issue, if genuine.
• Offer to resolve the concern offline.
• Avoid emotional or defensive responses.

Sometimes, this leads to the reviewer modifying or removing their review voluntarily.

3. Report the review to the platform

If you believe the review breaches platform policies, report it directly to the site (e.g. Google, Facebook) and request it is removed.

Platforms are not legally required to remove reviews, but they often will if there's a clear breach of their rules.

Under New Zealand’s Harmful Digital Communications Act 2015, platforms are encouraged to handle such requests promptly as the platform itself may be considered "online content hosts" under the Act and partially liable. Referring them to the law and the evidence that notes they may be liable can prompt action as their reputation is also at risk for allowing unlawful reviews to remain.

4. Consider legal advice

If informal steps fail, legal action may be considered, especially if the review causes serious reputational or financial harm. Instructing a solicitor at this point is advisable.  It may be a formal cease and desist letter prompts the reviewer to action or, in more serious cases an application to the Court could be made for an Order to remove the content.

5. Take preventative steps

• Monitor your online presence regularly.
• Encourage happy customers to leave positive reviews.
• Build a reputation for transparency and customer service—this can dilute the impact of any one negative review.

Final Thoughts

Small businesses in New Zealand are not powerless in the face of harmful online reviews. By understanding the relevant laws and responding strategically, you can protect your reputation without escalating conflict unnecessarily.

If your business has been impacted by an unjustified negative review, we can advise on the legal options and practical advice as to the next steps.

Please feel free to contact Sarah Hartley, Associate (021 686 177 / sarahh@mmlaw.co.nz) or any member of our commercial law team for further help and advice.