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Internet Law 9 min read By Adv. Or Elyashiv

How Online Reviews Create Real Legal Risk for Israeli Businesses

Between free speech and reputation protection: how Israeli law treats user reviews, ratings, and business responses online.

קראו בעברית

A single review can reshape a business overnight

A restaurant owner wakes up to a three-line Google review accusing the business of causing food poisoning that never happened. A SaaS company receives a one-star rating from a "customer" who never purchased the service. An online store discovers a wave of paid positive reviews designed to bury genuine negative feedback. These three scenarios, all fairly common in the Israeli market, point to the same legal question: where is the line between legitimate consumer commentary and reputational harm, and what can a business lawfully do in response?

Reviews and ratings have become central to purchasing decisions, and consequently a frequent subject of litigation. Israeli courts, particularly magistrate's courts, regularly hear disputes arising from reviews posted on Google, Facebook, and dedicated rating platforms. This article surveys the relevant legal framework and the tools available to businesses facing damaging or fraudulent reviews.


Fabricated reviews as consumer deception

A separate issue is that of fake reviews, whether written by the business itself, by someone acting on its behalf, or by a competitor seeking to cause harm. The Consumer Protection Law, 5741-1981, prohibits a dealer from engaging in conduct likely to mislead a consumer on a material matter. Publishing fabricated or invented reviews may constitute such deception, particularly where there is no adequate disclosure that the content is sponsored or does not reflect a genuine customer experience.

The same applies to purchasing positive reviews for payment or attempting to bury genuine negative reviews by flooding a platform with artificial ones. These practices can expose a business to scrutiny from the Consumer Protection and Fair Trade Authority, to claims from misled customers, and in some cases to claims from competitors based on commercial torts.


What responsibility do Google, Facebook, and rating sites bear

A separate question concerns the liability of the platforms themselves, Google, social networks, and dedicated rating sites, for content posted by their users. Israeli law does not have a comprehensive statutory scheme granting platforms broad immunity comparable to that found under U.S. law. In practice, courts tend to require an injured party to first pursue the actual author of the content, and only where the author cannot be identified to approach the platform with a request for removal or disclosure of the poster's identity.

Israeli case law addressing requests to unmask anonymous posters has applied a balancing test between the right to privacy and anonymous free expression on one hand, and the injured party's right to pursue legal remedies on the other, generally avoiding a blanket obligation to disclose. In practical terms, obtaining the identity of an anonymous poster is not automatic, and a separate legal proceeding is often required.

On a practical level, most major platforms operate internal reporting mechanisms allowing a request to remove a review that violates their usage policies (for example, promotional content, hate speech, or a review clearly posted by an unrelated party). This route is typically faster and more accessible than litigation and is generally worth exhausting first.


When a platform request is not enough

Where a direct request to a platform is unsuccessful, and a review appears to satisfy the elements of defamation, a business may turn to the courts. Available remedies include interim or permanent injunctions ordering removal of the content, monetary damages, and in some cases a mandated correction or apology. In cases involving clear and tangible harm to a business, statutory provisions allowing compensation without proof of actual pecuniary loss may also be available.

The likelihood of success should be carefully weighed before initiating proceedings. Suing a consumer reviewer, even where the claim appears well-founded, may trigger public backlash that causes more reputational damage than the original review, a phenomenon known internationally as the "Streisand effect." Alongside the purely legal analysis, a sober business and communications assessment is therefore essential.


A business's own response can itself create legal exposure

Many businesses overlook the fact that their own response to a review is itself a publication that can expose them to liability. A response that discloses a customer's personal information, alleges malicious intent, or attempts to publicly "put the reviewer in their place" in harsh language may itself constitute defamation, and may even undermine a defense the business would otherwise have had if it had simply refrained from responding.

The recommended approach is a professional, measured, and matter-of-fact response: acknowledging the customer's experience, offering to resolve the issue outside the public platform, and avoiding a public dispute. Such a response not only reduces legal risk but also presents the business favorably to other prospective readers.


What businesses should actually do

Effective management of reviews and ratings requires a clear policy set in advance, not just an ad hoc reaction during a crisis. A business that decides in advance how it will handle reviews, who responds, when to approach the platform, and when to seek legal guidance, significantly reduces the risk of unnecessary escalation.

Reviews and ratings will remain an arena where free expression, the public's right to reliable information, and a business's right to protect its reputation intersect. Distinguishing a legitimate, if harsh, review from an unjustified attack on a business remains a factual and legal question that must be examined case by case, rather than through a sweeping rule of thumb.


The information contained in this article is general in nature and does not constitute legal advice. For advice tailored to the specific circumstances of your company, we invite you to contact our firm.

Adv. Or Elyashiv
Written by

Adv. Or Elyashiv

Founder of Or Elyashiv Law Firm, specializing in technology law, privacy protection, intellectual property, and commercial law. Advising tech companies, startups, and international investors. Data Protection Officer (DPO), a graduate of the Tel Aviv University training program for data protection officers, held in cooperation with the Israeli Privacy Protection Authority.

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