Press releases lead to legal action

When it comes to providing media content to journalists, companies and PR professionals will often walk a fine line, especially when it comes to reputational risk management. This was illustrated clearly in a recent legal appeal between an Australian designer and a well-known swimwear brand. The designer alleged that the company had made wholesale copies…

When it comes to providing media content to journalists, companies and PR professionals will often walk a fine line, especially when it comes to reputational risk management.

This was illustrated clearly in a recent legal appeal between an Australian designer and a well-known swimwear brand. The designer alleged that the company had made wholesale copies of her work, leading her to make a number of posts on social media attacking the corporation.

While court action around the social media posts was concluded a few years ago, there remained an ongoing dispute over the company’s subsequent action – in particular, the content of two press releases that were sent to media outlets in 2010.

These two releases contained a number of statements that took a hard line against the allegations made against the company and which were subsequently repeated in a number of publications.

Originally, the company was taken back to court over the press releases and judged to be not guilty. However, on appeal it was found that the company had in fact engaged in misleading and deceptive conduct when they distributed the two press releases.

The court ruling hinged on the seriousness of the allegations – the fact that the company had taken a very strong stand against the accusations and had also made personal allegations against the designer. Other important factors included the size of the swimwear company, which led to the press releases being circulated across a wide range of media outlets.

In the end, the company was ordered to pay the woman $40,000 for the damage caused by these press releases, compared to the $20,000 that the company had received as a result of the original social media posts.

For PR professionals, this case highlights the importance of treading lightly around potential defamation, especially when trying to limit the risk to a company’s reputation.

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