Shopee appliance seller sues customer over bad review – and loses

[SINGAPORE] A Shopee vendor that sued a customer for defamation over a negative review has lost its case, with the District Court finding the review was not defamatory and ordering the retailer to pay the customer S$4,000 in costs.

According to grounds of decision released on Monday (Aug 31), the customer, Chua Poh Hiok, had bought a cooker hood from appliance retailer Asia Excel through its Shopee store.

While it was not stated when Chua had made the purchase or how much it had cost, she subsequently left a review on Asia Excel’s listing page on Nov 13, 2024, about her experience.

In her review, Chua expressed frustration over what she described as the seller’s repeated reminders that there would be no refund or return once the item had been delivered and accepted, and that someone had to be home to inspect and sign for the delivery or pay a S$35 re-delivery fee.

“Now, what if after installation, it is faulty? How to receive and make sure immediately it is not faulty?” she wrote. “Consider the above before you buy.”

Asia Excel subsequently commenced a defamation suit against Chua, who represented herself, over the review.

The firm did not deny having those delivery and return policies. Instead, it argued that the review conveyed that customers should not buy from the retailer because of those practices.

However, District Judge Chiah Kok Khun said in his judgement that Asia Excel had failed to establish how Chua’s reviews were defamatory in nature and that was “sufficient to dispose of the claim”.

He noted that Asia Excel had largely paraphrased parts of Chua’s review when setting out the meanings it considered defamatory, without explaining how those meanings would lower its reputation.

A statement is defamatory if it lowers a person’s or company’s reputation in the eyes of ordinary reasonable people, causes others to shun or avoid them, or exposes them to hatred, contempt or ridicule, the district judge said.

Comments based on facts

He also found that the defence of justification would apply in any event, as the substance of Chua’s review concerning Asia Excel’s delivery and refund practices was true.

The district judge also noted that Shopee actively encourages buyers to leave reviews on its platform.

He found that Chua’s review amounted to comment based on facts – namely the information Asia Excel itself had communicated to her about its delivery and return policies – and that her views were ones a fair-minded person could honestly hold.

“As the claimant is selling merchandise on a popular online shopping platform, I also find that the comments are a matter of public interest,” he said.

“I therefore find that the defence of fair comment would apply in any event in the present case.” 

The district judge added that sellers who use e-commerce platforms must accept ratings and reviews on their goods and services as part of conducting business online.

Negative reviews, he said, are necessarily part and parcel of conducting business online.

“The tort of defamation protects the reputation of individuals and businesses. But not every negative review is defamatory,” he said.

“With the proliferation of online shopping, we need to guard against any increase in unmeritorious defamation actions stemming from negative online reviews posted on e-commerce platforms.”