When a Bad Review Costs $673,000: Defamation and ACL Lessons from Singh v Singh Homes

Singh v Singh Homes [2026] VSCA 191

Online reviews have become one of the most powerful tools available to consumers. Before engaging a builder, tradesperson, accountant or contractor, most people will check Google reviews, Facebook groups, TikTok videos or online forums.

But what happens when a negative review goes viral, turning consumer feedback into a campaign of misinformation that causes reputational and financial harm?

The recent Victorian Court of Appeal decision in Singh v Singh Homes Pty Ltd[1] is a timely reminder that while consumers are entitled to share their experiences, there can be legal consequences when online criticism goes beyond honest opinion and into false or misleading statements.

Factual background

In 2022, Gurvinderpal Singh (Mr Singh) engaged Singh Homes Pty Ltd (Singh Homes) to build his new home. During construction, disputes arose regarding the quality of the works and payment delays. When those issues could not be resolved, Singh Homes terminated the building contract in February 2024.

Following the termination, Mr Singh took to social media to share his grievances. He posted on the Facebook page “Dodgy Builders Melbourne”, criticising Singh Homes and warning others against engaging the company.

Mr Singh later published a TikTok video in Punjabi containing a series of allegations about Singh Homes and a number of individuals associated with the company. The video quickly gained traction online, attracting approximately 220,000 views and prompting numerous third-party comments, including claims that the company was experiencing financial difficulties and facing liquidation.

As a result of the publications, Singh Homes and its directors, Parvinder Singh Sarwara (Mr Sarwara) and Daman Anand (Mr Anand), commenced proceedings against Mr Singh, alleging misleading or deceptive conduct, injurious falsehood under the Australian Consumer Law (ACL) and defamation under the Defamation Act 2005. They claimed the publications had caused significant damage to their personal and commercial reputations and resulted in substantial financial loss.

The Outcome

At trial, Mr Singh was found liable for misleading and deceptive conduct and injurious falsehood arising from his social media publications. Singh Homes was awarded damages of $673,000 for losses said to have been caused by the publications.

On appeal, Mr Singh argued, among other things, that his social media posts were not made “in trade or commerce” and therefore he did not contravene s 18 (misleading and deceptive conduct) of the ACL. However, the Court declined to determine the issue because the findings of injurious falsehood independently supported the damages award.

The Court did, however, allow the directors’ appeal in relation to defamation. It found that the trial judge had not adequately considered the impact of third-party comments made in response to Mr Singh’s TikTok video, including comments suggesting the company was facing insolvency. Those comments were capable of contributing to the serious harm required for a defamation claim.

Key takeaways

Singh v Singh Homes is a reminder that a seemingly informal social media post or TikTok video can have serious legal consequences if such content is defamatory and or misleading.

For customers, the lesson is simple: share your experience honestly, but take care not to overstate or embellish the facts or publish defamatory material. Importantly, the risks may not stop with what you say yourself. The Court recognised that comments made by other users in response to a social media post may contribute to the harm caused by the publication, meaning that a viral post can carry consequences beyond the words originally published.

For businesses, the decision highlights that legal remedies may be available where false online publications cause reputational or financial harm. While the scope of section 18 of the Australian Consumer Law in the context of consumer reviews remains uncertain, the risks associated with defamation and injurious falsehood are very real.

[1] [2026] VSCA 191.

 

Danielle Snell, Managing Partner & Co-Founder | [email protected] | 0401 812 885

Robert McGirr, Partner & Co-Founder | [email protected] | 0413 944 023

Article co-authored by Annie Cai, Paralegal at Elit Lawyers

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