PROVEN IN AND OUT OF THE COURTROOM

Group photo of attorneys from law firm Blish & Cavanagh, LLP

Effects of defamation on Rhode Island businesses

On Behalf of | Jun 11, 2026 | Business Law

The advent of the internet and social media changed the way we communicate with each other. Nowadays, news can cross countries and borders in the blink of an eye. But that can mean opinions and misleading information can spread very quickly and harm those trying to make an honest living.

Defining defamation

Defamation is a legal term for creating untrue assertions about a person or business that causes damage to their reputation. In Rhode Island, there are two main types of defamatory statements:

  • Libel: When the statement is published in a permanent or semi-permanent written or recorded form. Some examples of libel may appear in printed material like newspapers, digital mediums like emails or recorded videos on social media posts.
  • Slander: False spoken statements or other temporary forms of communication. Examples of slander may appear in face-to-face communication or live unscripted broadcasts.

The exact legal classification and type will depend on what words or accusations were used. If you believe you or your business is a victim of this crime, act quickly as Rhode Island has a strict one-year statute of limitations (from the date the other party published or spoke the defamatory statement).

It is not “just words”, they are falsehoods with wide-reaching consequences.

How words can hurt even big businesses

Defamation is not just a matter of people hurling playground insults or making fun videos. You can lose your customer base’s trust, damage your business’ professional reputation and drive away potential customers or hires. A defamatory statement can mean financial loss—and much more.

False statements may not directly impact your business financially, but it can alter the public’s perception of you. Some examples of how defamation can have long-lasting impacts:

  • The Social Media Rumor: Someone posts on social media about a false rumor of a local business owner scamming their customers with a fake product. Multiple buyers take their bought goods to stores and demand refunds in return, causing headaches for customer support.
  • The Misleading Review: A user writes a review of a restaurant on a food blog and claims that they ate spoiled food. Potential customers avoid the restaurant entirely and the business loses sales.
  • The Deceptive Rival: A rival contractor tells a client that a competing local business creates substandard projects, causing lost trust in the other business. The client rejects the competing business for the contract.

Victims are not entirely powerless. You can receive relief through recovering financial compensation, forcing a retraction and other legal remedies for your business.

Defending your business

It is in your best interest to immediately take action as soon as you identify defamation. The one-year statute of limitations in Rhode Island means you are working against the clock if you want to file a claim. You may lose contact with individuals or have crucial evidence deleted if you wait too long.

Do not miss executing these key actions for your legal defense:

  • Document or record posts: Secure as much evidence of the harmful statements as you can. Some examples include audio posts acknowledging it, video timestamps of when the individual spoke the statements and photographs of the incident
  • Contact any witnesses: Gather statements from third parties who were there when the other party made the false statements.
  • Create a demand letter: Reach out to a legal professional for help in serving a formal letter to the person who made the false statement. You might be able to resolve the matter without a costly lawsuit
  • Initiate legal proceedings: File a civil lawsuit in the Rhode Island District Court for small claims of $5000 or less or at the Superior Court for larger damages.

Navigating defamation claims may sound tricky, but timely work and sound legal advice can help you build your case and preserve your business’ reputation.