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CMA Foundation · Fundamentals of Business Laws and Business Communication · Do's and Don'ts of Communication through Social Media

A manager at a Chennai firm shares a viral post claiming a rival company's product is unsafe, without verifying the claim. The claim turns out to be false. What is the main risk of this action?

The main risk is exposure to a defamation claim along with loss of credibility. Sharing an unverified, false statement that harms a rival's reputation can create legal liability. Professionals should verify facts before forwarding content, since resharing makes the sharer responsible for the message too.

  1. AReduced number of followers only
  2. BExposure to a defamation claim and loss of credibilityCorrect
  3. CAutomatic closure of the firm's social media account
  4. DCompulsory registration of the post with the government

Explanation

Sharing unverified false statements that harm a rival's reputation can amount to defamation and also damages the sharer's credibility. Losing followers is a minor effect, and there is no automatic account closure or registration requirement for such posts.

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