The Alliance for Insurance Reform has today called on Senators to amend the Defamation Bill coming before the Seanad this week, warning that the legislation in its present form does little to protect small and community businesses from vexatious defamation claims.

Ireland has more defamation cases than England and Wales, and on a population basis the rate here is about sixteen times higher. While these cases are often portrayed as media-related, the reality is that a large volume of these claims affect local retailers, corner shops, and businesses in the tourism and hospitality sectors.

“Everyday moments — like asking for proof of purchase (a receipt) — are spawning costly defamation claims that small shops can’t afford,” said Flora Crowe, grocery store owner and Alliance Board member. “The Bill needs targeted amendments so that genuine reputations are protected and community businesses aren’t forced into unfair settlements. We’re asking Senators to make those changes now so that small businesses can focus on serving their customers, promoting employment, and protecting their business, not fighting off costly and unfair litigation.”

Dubious claims can be brought with little or no risk to the claimant, while the business — even if it successfully defends itself — is often unable to recover its legal costs. This forces insurers to settle many suspect claims and drives up premiums for small businesses already struggling with the cost of doing business.

What needs to change now
The Alliance is urging Senators to introduce amendments that will give small businesses real protection. Chief among these is a safeguard for routine retail interactions (such as asking for proof of purchase). This would allow genuine cases to proceed while preventing everyday interactions from sparking costly claims and ensuring the law is fair and proportionate.

“These reforms would not deny access to justice or confer immunity from prosecution,” Ms Crowe added. “They would simply filter out low-level or opportunistic claims while ensuring genuine grievances can still proceed. Without these changes, small community businesses will remain unfairly exposed to costly litigation and higher premiums.”

—ENDS—

FOR FURTHER INFORMATION CONTACT: contact@insurancereform.ie or Alliance CEO, Brian Hanley at 086 8620 974.

Notes to Editors:

• The Alliance: The Alliance for Insurance Reform brings together 47 civic and business organisations from across Ireland, representing over 55,000 members, 700,000 employees, 614,000 volunteers and 374,000 students.
• Defamation case numbers in Ireland (2023): According to the Courts Service data portal, 292 defamation cases were filed in the Circuit Court and 68 in the High Court, giving a total of 360 cases in 2023.
  Courts Service – Circuit Court Civil Reports 2023
  Courts Service – High Court Civil Reports 2023
• Comparative case numbers (England & Wales, 2023): Ministry of Justice statistics show 250 issued defamation claims in England & Wales in 2023.
  UK Ministry of Justice – Royal Courts of Justice Annual Tables 2023 (ODS)
• Comparative per-capita rate: On those figures, Ireland (population ~5.3m) had around 16 times more defamation cases per person than England & Wales (population ~60m).