Negative Online Reviews and Defamation Claims: Lessons from a Recent Court of First Instance Decision

The proliferation of online review platforms has transformed the way consumers evaluate products and services. While positive reviews can enhance a business’s reputation, negative reviews—particularly those receiving significant online attention—may prompt businesses to consider legal action against dissatisfied customers. A recent judgment of a Thai Court of First Instance involving a dispute between a well-known bakery in Phuket and one of its customers provides a timely reminder of the legal and commercial considerations surrounding such claims.

The case has attracted considerable media attention because the bakery reportedly sought THB 5 million in damages after a customer posted a one-star review describing the cake as “not tasty” and “overpriced.” According to publicly available reports, the Court of First Instance dismissed the claim. As the judgment is that of the Court of First Instance, it may still be subject to appeal and should not yet be regarded as the final judicial position.

Background:

According to publicly available information, the dispute arose after a customer posted a one-star review on an online platform expressing dissatisfaction with the bakery’s products, commenting that the cake was not tasty and that the price was excessive.

The bakery subsequently contacted the customer requesting that the review be removed and later commenced legal proceedings seeking approximately THB 5 million in damages. The dispute quickly gained widespread attention on social media, generating extensive public discussion regarding the balance between consumer rights and protection of business reputation.

In July 2026, the Court of First Instance reportedly dismissed the bakery’s claim. Although the full written judgment has not yet been publicly circulated, the outcome has reignited debate regarding the extent to which businesses may rely on litigation in response to unfavourable online reviews.

The Growing Legal Challenge of Online Reviews:

Online reviews have become an integral part of modern commerce. Consumers frequently rely on reviews when selecting restaurants, hotels, healthcare providers, retailers and other service providers. At the same time, businesses increasingly view online reputation as a valuable commercial asset.

Consequently, disputes arising from customer reviews have become more common. While businesses are entitled to protect themselves against false and malicious allegations, not every negative review will give rise to a viable legal claim.

The recent dispute illustrates the importance of carefully distinguishing between statements that constitute protected opinion and those that may amount to actionable false statements of fact.

Opinion Versus Statements of Fact:

One of the central legal issues in disputes involving online reviews is whether the impugned statement represents a factual assertion or merely an expression of personal opinion.

Comments such as:

“I did not enjoy the cake”;
“The cake was overpriced”; or
“I would not return”

are generally subjective evaluations reflecting an individual’s personal experience.

By contrast, statements alleging objectively verifiable facts—such as accusations that a business uses unsafe ingredients, engages in fraudulent practices or violates legal requirements—may expose the reviewer to greater legal risk if such allegations are false and cause reputational harm.

This distinction is fundamental because courts generally recognize that consumers are entitled to express honestly held opinions regarding products and services, even where those opinions are critical.

Defamation Claims Require More Than Mere Dissatisfaction:

The case also serves as a reminder that a business seeking damages bears the burden of establishing the legal elements of its claim.

In practice, commencing legal proceedings simply because a review is unfavourable does not guarantee success. The claimant must establish the applicable legal requirements, including any necessary evidence regarding the allegedly unlawful statements and the resulting damage.

Where a review reflects a genuine customer experience rather than fabricated allegations, litigation may present significant evidentiary challenges.

Commercial Risks of Suing Customers:

Apart from legal considerations, businesses should also consider the broader commercial implications before commencing proceedings against customers.

Litigation concerning online reviews often attracts media attention that substantially exceeds the visibility of the original review itself. The dispute may be widely shared across social media platforms, leading to increased public scrutiny and reputational consequences that outweigh the impact of the initial criticism.

This phenomenon—often referred to internationally as the “Streisand Effect”—illustrates how attempts to suppress criticism may unintentionally amplify it.

Businesses should therefore carefully assess whether legal proceedings represent the most effective strategy for protecting their reputation.

Practical Considerations for Businesses:

Before initiating legal proceedings over an online review, businesses should consider:

whether the review constitutes a subjective opinion or an objectively false factual allegation;
whether there is sufficient evidence to establish the legal elements of a claim;
whether direct engagement with the customer may resolve the dispute without litigation;
whether the anticipated reputational consequences of litigation outweigh the potential legal remedies; and
whether alternative reputation management strategies may better serve the business’s long-term interests.

Legal action remains an appropriate response in cases involving knowingly false accusations, malicious campaigns or fabricated reviews. However, proceedings should generally be undertaken only after careful assessment of both the legal merits and the wider commercial implications.

Looking Ahead:

Although the recent dispute has generated substantial public interest, it is important to recognize that the reported decision is a judgment of the Court of First Instance. Unless and until the appellate process is exhausted or the appeal period expires, the judgment should not be treated as representing the final legal position.

Nevertheless, the case highlights an increasingly important issue for businesses operating in Thailand. As online reviews continue to influence consumer behaviour, businesses should develop appropriate internal strategies for responding to criticism, balancing the protection of commercial reputation with the legal rights of consumers to express honest opinions regarding their experiences.

Key Takeaways:

A negative online review does not automatically constitute unlawful defamation or give rise to a successful claim for damages.
Businesses should carefully distinguish between subjective opinions and objectively verifiable factual allegations before considering legal action.
Litigation over customer reviews may generate significant reputational and commercial consequences independent of the legal outcome.
The recent Phuket bakery dispute was decided by the Court of First Instance, and the decision may still be subject to appeal.
Businesses should adopt a measured and evidence-based approach to online reputation management, reserving litigation for cases involving genuinely false or malicious statements.

Author: Panisa Suwanmatajarn, Managing Partner

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Negative Online Reviews and Defamation Claims: Lessons from a Recent Court of First Instance Decision