Retailers have been betrayed as Government drops key defamation protection, says ISME
ISME urges TDs to 'reject weak Defamation Bill that fails to protect small business'
Print2 July 2025
ISME has called on TDs to reject the Defamation Amendment Bill due to return to the Dáil today (2 July), warning that the legislation in its current form fails to protect small businesses from vexatious and abusive defamation claims.
In a statement, the Irish SME Association, noted that the original General Scheme of amendment of the Defamation Act had promised a ‘Transient Retail Defamation’ test to protect small businesses from ludicrous defamation cases.
This protection for retailers has been removed in the current bill, the group added.
‘Repeated threats’
ISME outlined that many Irish SMEs, particularly in retail and hospitality, face repeated threats of defamation litigation from customers, often with no actual reputational harm.
These cases are expensive, time-consuming, and often used strategically to secure settlements.
Irish courts now handle more defamation cases than England and Wales, despite Ireland having a population twelve times smaller. Many retailers in Ireland have stopped challenging suspected shoplifters as a result, it added.
‘Bearing the brunt’
Retailers ‘permit theft from their premises, as the defamation risk posed in protecting stock exceeds the value of stock stolen’.
Speaking with ShelfLife, Neil McDonnell, chief executive of ISME, said: “Retailers across Ireland are bearing the brunt of a broken system.
“The removal of the promised ‘transient retail defamation’ defence in the Defamation Bill is a direct blow to shop owners who are simply trying to protect their stock and staff.
“Every week, retailers are threatened with legal action for ludicrous reasons because the law allows it.
“This is putting many shops out of business and causing real suffering to decent, hardworking people. This bill protects legal profits, not business owners.
“If Government is serious about supporting retail, it must put this defence back in the bill before it’s too late.”
ISME have also warned that the Defamation Bill in its current form does not meet European legal standards on free speech, proportionality or access to justice.
Read more: ISME calls on consumers to ‘Think Green and Buy Irish’ this St. Patrick’s Day
© 2025, by ShelfLife reporter
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