Can Companies Sue Critics for Bad Product Reviews? Supreme Court Asked to Decide - August 25, 2003 Vol.4 No.17

August 25, 2003 Vol.4 No.17:

Published: 08/25/2003

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Can Companies Sue Critics for Bad Product Reviews? Supreme Court Asked to Decide

Can companies sue critics who publish independent tests of products? The publishers of Consumers Reports have petitioned the Supreme Court to stop a suit that tests the right of consumers to be informed of independent test results.

In July 1988, Consumers Union reported that the Suzuki Samarai, a small-sized SUV, repeatedly tipped in the organization's standard test for vehicle emergency handling. Other vehicles navigated the same course without tipping. CU rated the Samarai "not acceptable" based on the rollover risk and mentioned the rating again in a 60th anniversary issue in 1996. Suzuki sued, claiming that CU knowingly made false statements. The first judge reviewing the case against CU threw out the case before going to trial, but two appeals courts have ruled that CU must stand trial. At issue partially in the case is whether the First Amendment protects speech that disagrees with the government.