Websites are ubiquitous in today’s digital world, yet many people don’t realize they can take legal action against them.
While web-based companies may lack physical storefronts, they remain legally accountable entities.
Some unscrupulous websites mishandle personal information or publish false content without consent, leaving individuals feeling powerless.
When conventional remedies fail, pursuing legal action may become necessary.
Before filing a lawsuit against a website or online business, determining its physical location is an important first step in the legal process.
When can you sue a website?
The Supreme Court has ruled that you may only sue a website for publishing incorrect personal information if you can show that it caused real, actual, or imminent injury.
An example of this injury would be having a mortgage application denied or losing a job opportunity.
You shouldn’t sue a website for posting incorrect material unless there is concrete harm of this type.
Determining jurisdiction is important when suing a web-based company. Check if the company has business licenses or physical presence in your state.
You can often find a business address by searching the Secretary of State’s website for that state.
Suing for fraudulent internet transactions is complicated by difficulties locating the perpetrator, who may be thousands of miles away, and convincing local courts to exercise jurisdiction.
Nonpublic financial information follows different rules. The Gramm-Leach-Bliley Act (GLBA) restricts what nonpublic personal information financial institutions can share with third parties.
“Financial institution” means not only banks or credit unions and can apply to a broad range of businesses.
The GLBA requires businesses to tell customers about nonpublic personal information they collect, how they use it, and with whom they share it.
If companies want to share customer information with third parties, they must provide an opt-out procedure.
To protect nonpublic personal information, look for opt-out methods with your financial institutions.
The Fair Credit Reporting Act (FCRA) provides requirements for landlords, employers, furnishers, insurers, and organizations collecting, managing, or destroying credit reports.
Agencies that handle complaints against websites
There are several important resources to consider when dealing with online business disputes.
The Internet Crime Complaint Center (IC3)
The Internet Crime Complaint Center is a federal agency where consumers can report online identity theft, extortion, economic espionage, hacking and other cybercrime.
Even if your specific issue isn’t listed, you should still contact the IC3, as they may refer you to another service that can help you.
The Better Business Bureau (BBB)
The Better Business Bureau is a non-profit organization focused on building marketplace confidence. It is not a government agency.
The BBB can help you file complaints against online shops and other businesses.
Before engaging with a company, check their BBB profile to see if others have filed complaints and whether these issues were resolved.
This research helps determine a company’s trustworthiness before doing business with them.
The Federal Trade Commission (FTC)
The Federal Trade Commission offers online complaint assistance for consumers reporting fraudulent conduct.
Users can select from various complaint categories, answer questions, and explain their situation to the FTC.
Reporting these complaints helps the agency find patterns of fraud and abuse.
When a web-based business has no physical address
The first step in suing any business, including one without a physical address, is determining where to file your complaint.
It’s generally more convenient to sue a company in the nearest court in your state of residence.
You can typically file a complaint in any jurisdiction where:
- The defendant resides
- The defendant conducts business
- The incident or dispute occurred
- The contract was signed or completed
- Significant circumstances related to the case took place
When you access a company’s website from a server in another state or country, it becomes difficult to establish whether the website directed any activity to your location.
You may need to sue the corporation that hosts the website’s server instead.
How to sue a website for defamation
Libel is written defamation published online. If information meets the definition of libel, you can sue the source of the defamatory comment—if they can be identified.
While you might want to sue the website’s host or internet service provider (ISP), these entities are specifically protected from most defamation claims under federal legislation known as the “Communications Decency Act.”
To win a libel lawsuit, you must prove the following:
- The defendant made a false statement about you
- The statement was defamatory in nature
- The defendant communicated this defamatory statement to a third party
- The publisher knew the statement was untrue
- The publisher acted recklessly in publishing the communication
Finding a lawyer to sue a website
An experienced business lawyer is your best resource for navigating the legal complexities involved in suing an internet company.
A knowledgeable attorney can evaluate whether you have a possible case worth pursuing.
They can explain the legal implications of filing a lawsuit and recommend the most appropriate venue for your complaint.
If you believe you have grounds to sue a web-based company, consult with a specialized business attorney before moving forward.
Getting professional legal advice before taking action can save you time, money, and frustration.
Remember that internet-related lawsuits are complicated by the distance and anonymity typical of online transactions.
