Advice on Successfully Protecting Your Business Reputation

They were the best of times. They were the worst of times.

For many, that's the dichotomy posed by the Internet's increasing popularity. We now live in a time of expanded communication and easy access to information; however, much of the information available is questionable, if not downright false.

Anyone can create a Web site, enter a chat room, circulate e-mails or electronic newsletters or post information on bulletin boards. The credibility of the person or company providing the information is often difficult to judge. This creates an environment that permits individuals and/or companies to spread inaccurate and false information about you or your company.

Personally, I've received e-mails warning me not to use certain products because of potentially disastrous results. Most of these documents make claims that are so far-fetched, it's easy to discount as a hoax. But imagine if it happened to your company's product or service.

Perception is reality  so false information can be damaging to your business. The law of defamation protects a company's interest. Generally, the courts have held that the law applies to false statements made over the Internet. A cause of action for defamation consists of:

- published statement (must be false)

- the statement defamed you or your company

- the statement involves actual malice or negligence (actual malice must be shown in cases of a public official or public figure)

So if someone defames your company in cyberspace, what do you do? A first step is to send an e-mail to the defamer insisting that the false statements stop and that he issue a public retraction. If that doesn't work, the next step is to put pressure on the defamer's Internet Service Provider (ISP) by e-mailing a well-documented complaint. ISPs generally take these types of complaints seriously and will often cancel their account. If that approach doesn't work, find an attorney who has experience in the area of cyberspace defamation.

But even if you can prove a claim of defamation, will a lawsuit be economically justifiable? As an entrepreneur, you'll have to weigh the costs of restoring your reputation against the staggering costs of litigation.

Because it's impossible to guard against all possible aspects of defamation, the best approach is a proactive plan. Make sure you communicate regularly with your customers. Provide current company information and keep your Web site updated. If there are particular chat rooms your customers or clients frequent, make sure someone monitors them regularly.