In a highly competitive business environment, protecting a company’s reputation during litigation is a matter of critical importance. A single legal dispute or the spread of negative information can significantly affect a company’s image, customer relationships, and business operations. Thus, in addition to resolving the lawsuit itself, enterprises should adopt appropriate measures to protect their reputation during litigation in accordance with applicable laws in order to mitigate risks and minimize potential losses.
I. The current situation of enterprises experiencing reputational damage due to legal disputes
At present, many enterprises involved in legal disputes or facing lawsuits are confronted with the risk of serious damage to their reputation and brand image. Even before a competent authority issues an official conclusion, information relating to the dispute may spread rapidly through social media, news, and online forums, thereby undermining the confidence of customers, business partners, and investors.
In practice, there have been numerous cases in which competitors have taken advantage of ongoing litigation to disseminate negative information, create misunderstandings, or otherwise interfere with a company’s business operations. In addition to financial losses, enterprises may lose valuable business opportunities, suffer a decline in brand value, and have significant difficulties in restoring their image following the resolution of the dispute.
Thus, proactively protecting an enterprise’s reputation during litigation is not merely a matter of public relations but also an important legal requirement to minimize risks and safeguard the company’s position in the marketplace.
II. Concept of protecting an enterprise's reputation during litigation
1. What is the protection of an enterprise's reputation during litigation?
Protecting an enterprise's reputation during litigation refers to the implementation of legal, communication, and information management measures by an enterprise to limit adverse impacts on its honor, image, and brand throughout the process of a dispute or lawsuit. Such measures help enterprises minimize damage relating to customers, business partners, and commercial activities.
2. What factors affect an enterprise’s reputation during litigation?
During litigation or legal disputes, an enterprise’s reputation may be affected by various factors. One of the most significant factors is the dissemination of information concerning the dispute through social media, news, or online platforms in a negative manner or without adequate verification.
Furthermore, the manner in which an enterprise handles the dispute directly affects its brand image. Delayed responses, a lack of transparency, or inconsistent statements may cause customers and business partners to lose confidence. In addition, statements made by competitors, employees, customers, or other related parties may further exacerbate the negative impact on the company’s reputation.
Apart from media-related factors, the nature and severity of the dispute, as well as the industry in which the company operates, are also important considerations. Enterprises operating in sectors such as finance, real estate, healthcare, or consumer goods are generally more vulnerable to reputational damage because their operations directly affect the interests of numerous customers and business partners.
III. Legal regulations relating to the protection of enterprise's reputation during litigation
1. What acts are considered infringements upon an enterprise’s reputation?
Acts deemed to infringe upon an enterprise’s reputation are those that adversely affect its honor, reputation, image, or lawful business activities through the provision, dissemination, or use of unlawful information.
For commercial legal entities, Clause 1, Article 86 of the Civil Code 2015 provides that legal entities possess personal rights appropriate to their legal nature, including the right to protection of their reputation and honor in business activities.
Acts commonly considered to constitute infringements upon an enterprise's reputation include:
- Publishing or disseminating false information that adversely affects the company’s image or brand;
- Defaming or slandering an enterprise with the intention of undermining its reputation among customers and business partners;
- Exploiting an enterprise's involvement in litigation or disputes to spread unverified information;
- Providing misleading information intended to cause damage to the company’s business operations;
- Using social media, press channels, or electronic means to insult or harm the enterprise’s reputation.
In addition, Article 45 of the Competition Law 2018 prohibits acts of unfair competition, including the dissemination of untruthful information about another enterprise for the purpose of adversely affecting such an enterprise’s reputation, financial condition, or business activities.
Depending on the nature and severity of the violation, individuals or organizations engaging in acts that infringe upon an enterprise's reputation may be required to correct information, issue public apologies, compensate for damages under Article 592 of the Civil Code 2015, or may be subject to administrative sanctions or criminal liability in accordance with applicable laws.
2. Regulations on the protection of the honor and reputation of organizations and enterprises
Vietnamese law contains various provisions designed to protect the honor and reputation of organizations and enterprises against acts that negatively affect their image, brand, and business operations.
With respect to organizations and enterprises that are legal entities, Clause 1, Article 86 of the Civil Code 2015 provides that legal entities enjoy personal rights consistent with their legal nature, including the right to protection of their honor and reputation in business activities. If the reputation of an enterprise is infringed, Article 11 of the Civil Code 2015 authorizes the enterprise to request competent authorities to apply civil remedies, including:
- Termination of the infringing conduct;
- Public apology and correction of information;
- Compensation for damages;
- Removal of false information or information infringing upon the enterprise’s reputation.
Furthermore, Article 45 of the Competition Law 2018 prohibits unfair competition practices involving the dissemination of untruthful information about another enterprise with the aim of adversely affecting its reputation, financial status, or business operations.
If the infringing conduct is committed through cyberspace, Clause 1, Article 101 of Decree No. 15/2020/ND-CP (as amended by Clause 37, Article 1 of Decree No. 14/2022/ND-CP) provides for administrative sanctions against acts involving the provision or sharing of fabricated or false information that harms the reputation of organizations and enterprises on social networks or electronic platforms.
3. When can acts infringing upon an enterprise’s reputation lead to criminal liability?
Acts infringing upon an enterprise’s reputation may lead to criminal liability where such acts are serious in nature and involve the intentional fabrication or dissemination of false information, or the use of computer networks and telecommunications networks to cause substantial harm to an enterprise.
Specifically, Article 156 of the Criminal Code 2015 (as amended and supplemented in 2017 and 2025) governs the offence of Defamation. Any person who fabricates or disseminates information known to be false for the purpose of seriously harming the honor, reputation, or lawful rights and interests of an organization or individual may be subject to criminal prosecution.
Furthermore, if such conduct is performed through social media platforms, the Internet, or electronic means to disseminate false information causing adverse effects on an enterprise, the offender may also be examined under Article 288 of the Criminal Code 2015 (as amended and supplemented in 2017 and 2025) regarding the offence of Illegal Provision or Use of Information on Computer Networks and Telecommunications Networks.
Depending on the nature, severity, and consequences of the violation, offenders may be subject to monetary fines, non-custodial reform measures, or imprisonment in accordance with the Criminal Code 2015 (as amended and supplemented in 2017 and 2025).
IV. Questions regarding the protection of enterprise's reputation during litigation
1. Can an enterprise claim compensation for reputational damage if it is wrongfully sued?
If an enterprise is wrongfully sued, defamed, or subjected to litigation that is exploited as a means of disseminating information damaging to its image, reputation, and business operations, the enterprise has the right to seek compensation in accordance with civil law provisions.
Pursuant to Articles 34 and 584 of the Civil Code 2015, any individual or organization that infringes upon the honor, dignity, or reputation of another person and causes damage must compensate for such damage.
For enterprises, damages arising from reputational harm are governed by Article 592 of the Civil Code 2015. An enterprise may seek compensation for the following losses:
- Reasonable expenses incurred to prevent, mitigate, or remedy the damage;
- Costs associated with communications and corrective public statements;
- Reduction in actual revenue or profits;
- Losses resulting from the loss of customers or contracts;
- Actual income lost or diminished;
- Compensation for reputational harm.
In addition to compensation, the enterprise may request the Court to order the violating party to:
- Cease the dissemination of false information;
- Remove infringing articles, images, or content;
- Issue a public apology and correction;
- Restore the lawful rights and interests that have been infringed.
However, to successfully obtain compensation, the enterprise must establish:
- The existence of unlawful conduct;
- Actual damages suffered;
- A causal relationship between the unlawful conduct and the damages;
- Evidence substantiating the extent of the damages.
Evidence commonly used includes:
- Defamatory articles, videos, or online content;
- Cancelled contracts;
- Evidence of declining revenue;
- Correspondence from customers;
- Financial statements;
- Bailiff records, expert opinions, or confirmations issued by competent authorities.
2. How should an enterprise respond when a competitor exploits a lawsuit to defame the enterprise?
When a competitor takes advantage of a lawsuit to defame or disseminate false information, an enterprise should promptly collect evidence, such as articles, images, videos, or social media content, to support the protection of its rights and interests. At the same time, the enterprise should proactively issue official statements to minimize negative impacts on customers and business partners.
From a legal perspective, Article 45 of the Competition Law 2018 prohibits acts of providing untruthful information about another enterprise for the purpose of adversely affecting its reputation, financial status, or business operations.
Furthermore, acts of distortion, defamation, or reputational attacks conducted through cyberspace may be subject to administrative sanctions under Point g, Clause 3, Article 102 of Decree No. 15/2020/ND-CP, with fines ranging from 10,000,000 VND to 20,000,000 VND. In serious cases, offenders may also take criminal prosecution for the offence of Defamation under Article 156 of the Criminal Code 2015.
In addition, enterprises have the right to request the removal of infringing information, demand a public apology and correction, and seek compensation for damages under Articles 584 and 592 of the Civil Code 2015 where reputational harm has caused actual losses.
3. Should an enterprise issue a press release before a lawsuit has been concluded?
Even where a lawsuit has not yet reached an official conclusion, an enterprise may issue a press release if it deems such action necessary to stabilize public opinion, protect its reputation, and prevent the spread of inaccurate information. However, the content of the press release should be carefully controlled, objective, and limited to what is necessary.
In practice, many enterprises choose to remain completely silent, allowing rumors or one-sided information to spread widely on social media, thereby causing substantial harm to their brand image. Accordingly, proactively issuing official statements may help enterprises maintain transparency and reassure customers, business partners, and investors. Nevertheless, enterprises should avoid:
- Disclosing unverified information;
- Making definitive conclusions while the matter remains under consideration;
- Revealing trade secrets or documents relating to legal proceedings;
- Making insulting or hostile statements toward the opposing party.
Moreover, under Article 38 of the Civil Code 2015 and other regulations protecting the lawful rights and interests of organizations, enterprises are entitled to request legal action against individuals or entities disseminating false information that damages their reputation.
4. What documents should an enterprise prepare to support litigation while simultaneously protecting its corporate image?
To effectively manage litigation while safeguarding its reputation, an enterprise should proactively prepare comprehensive legal documents, evidence, and communication materials relating to the dispute. Important documents typically include:
- Contracts, contract appendices, and related agreements;
- Emails, messages, and written correspondence exchanged between the parties;
- Payment records, invoices, and meeting minutes;
- Documents evidencing the actual damages suffered by the business;
- Articles, images, videos, or content showing signs of defamation or dissemination of false information;
- Documents proving ownership of trademarks, brands, or other reputation-related rights.
In addition, enterprises should prepare draft press releases, official statements, and designate a communications representative to ensure consistency and avoid the dissemination of conflicting information that could adversely affect its image.
Pursuant to Article 91 of the Civil Procedure Code 2015 (as amended and supplemented in 2025), litigants have both the right and the obligation to provide documents and evidence to protect their lawful rights and interests before the Court. Therefore, maintaining proper records and preparing relevant documents in advance will facilitate the dispute resolution process while reducing reputational and communication-related risks.
V. Why should you seek legal advice from NPLaw regarding the protection of an enterprise's reputation during litigation?
When facing issues relating to the protection of an enterprise's reputation during litigation, having legal counsel involved from the outset can help enterprises minimize legal risks, control the flow of information, and reduce adverse impacts on business operations. Beyond assisting with dispute resolution, legal counsel can also help enterprises develop appropriate communication strategies to protect their image and brand.
With extensive experience in corporate law, commercial dispute resolution, and crisis communication management, NPLaw assists enterprises in reviewing documents, assessing legal risks, developing strategies to protect their rights and interests, and addressing acts that infringe upon an enterprise's reputation in accordance with applicable laws. Such an approach enables enterprises not only to safeguard their legal interests but also to maintain their market position and preserve the confidence of customers and business partners.
The information provided above is for reference purposes only. Should you require detailed advice regarding a specific matter, please contact NPLaw for immediate legal consultation.
