The Price of a Bad Review: How Corporations Weaponize Defamation to Silence Dissent
In an alarming trend, powerful corporations are increasingly leveraging defamation laws to target individual consumers who voice grievances online. Legal experts assert that these lawsuits are often designed not to secure damages but to intimidate consumers into silence. These protracted legal battles can span years, inflicting severe financial and emotional tolls on those caught in the crosshairs.
Case Studies: The Human Cost of Corporate Litigation
Suchir Kalra, a former student at Ashoka University, experienced this firsthand. In May 2021, while recovering from COVID-19 at his Delhi home, he received a summons from the Delhi High Court. The Indian subsidiary of a global appliance firm had sued him and his mother for Rs 2.2 crore over four posts on X, formerly Twitter, where Kalra criticized a malfunctioning dishwasher and poor customer service, calling the company "dictators" and accusing them of scamming customers.
"The stigma of this case follows me everywhere," Kalra reveals. "I’m scared to write anything on social media now. My mother is constantly worried about our financial security." The Kalras have spent approximately Rs 5 lakh on legal fees, funded largely through crowd-sourcing from professors and friends, as they fight both a defamation suit and a consumer complaint.
Similarly, Vatsal Mishra, a 27-year-old marketing professional from Delhi, faced a Rs 5 lakh defamation suit from a motorcycle manufacturer in Pune after posting about unresolved performance issues on X and Instagram in 2024. Despite moving a consumer complaint in Delhi, the Pune case persists, with a court granting a temporary injunction against him. Mishra has incurred Rs 1 lakh in costs but refuses to delete his posts, stating, "The videos contain only facts, nothing abusive or personal."
Broader Patterns of Intimidation
In Mumbai, six defamation cases filed by a major hospitality company have been pending since 2021. One involves Shailendra Tyagi, a 59-year-old hotelier from Dehradun, sued for Rs 99 lakh over Facebook comments accusing the company of misleading customers. The case has cost him Rs 5 lakh and allegedly led to hypertension. "Even if the decision is against me, I’m ready to go to jail if I’m proven wrong," Tyagi says, "But the court can’t just keep us hanging."
Even legal professionals are not immune. Brigadier Vivek Chhatre (Retd), a Pune-based advocate, was sued in 2023 by the same hospitality company over news videos and an online petition. He explains, "First these companies seek an injunction. When they get it, they file frivolous applications alleging a breach. Such proceedings are elongated simply to exhaust the person."
Journalist Krishnaraj Rao, 60, also faced a lawsuit from a real estate developer in 2021 over videos highlighting alleged deceptive practices, relying on crowd funding for his defence. "So much of my time has been wasted just appearing before the court," he laments.
The Chilling Effect on Consumer Rights
This strategy of prolonged litigation risks creating a chilling effect, discouraging consumers from airing legitimate grievances. Sushila, an associate professor at National Law University, Delhi, notes, "Defamation law in India is generally misused by the stronger party against the weaker side." Ashok R Patil, vice-chancellor at the National University of Study and Research in Law, Ranchi, concurs, describing such lawsuits as tactics to force silence.
Judicial Interventions Upholding Free Speech
Despite these challenges, courts have occasionally stepped in to protect consumer rights. In February last year, the Delhi High Court dismissed a defamation plaint by ed-tech platform LawSikho against three individuals, ruling that X is a "casual conversational medium" and defamation requires proof of "substantial injury to reputation," not just hurt feelings.
The Madras High Court made a similar ruling in March 2023, quashing a criminal defamation case against a former client over a poor online review, stating that harsh expressions of dissatisfaction do not amount to defamation.
Ashish Goel, a constitutional lawyer involved in the Delhi case, warns, "For someone without legal knowledge or money, facing a defamation case for large sums can be daunting." Vipul Shukla, a Delhi-based consumer law expert, adds, "Such suits strangle consumer rights and the fundamental right to freedom of speech and expression."
This growing misuse of defamation law underscores a critical battle between corporate power and individual consumer voices, with profound implications for online discourse and accountability in the digital age.