Has a Competitor Posted a False Yelp Review? It May Violate Federal Law

June 25, 2012 - from DRMA

False business reviews posted by an unscrupulous competitor on customer recommendation websites, such as Yelp, are becoming an increasing problem for advertisers. Such malicious attacks, however, may be a violation of federal law. In Colonial Marble & Granite (Colonial) v. AAA Hellenic Marble (Hellenic), a U.S. District Court in Eastern Pennsylvania considered whether an alleged “smear campaign” directed against Colonial could constitute false advertising by a competitor that is actionable under the federal Lanham Act.

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