In the highly competitive and fast-paced trucking industry, maintaining a solid reputation is crucial. Brokers and trucking companies alike rely heavily on positive reviews and industry reputation to secure business and ensure steady operations. Previously, I have written about when such negative reviews rise to the levels of defamation and potential legal remedies available to protect a business’s good will.

Unfortunately, some unscrupulous persons or companies may exploit this vulnerability by threatening to post false negative reviews online to coerce carriers into unfair agreements or payments. Some carriers even report being openly extorted – with brokers demanding cash payments in exchange for removing a false FreightGuard report. At Artaev at Law PLLC, we understand the devastating impact such threats can have on your business and we stand by to help protect your company’s rights. This article explores the legal remedies available, including the differences between blackmail, civil extortion, and economic duress.

Blackmail

Blackmail, also known as extortion in certain contexts, is a crime both under state and federal law. The federal Hobbs Act prohibits extortion affecting interstate or foreign commerce – a designation especially applicable in the cross-border trucking industry.

The crime involves coercing someone to take action or refrain from action by threatening to reveal damaging or incriminating information. In the trucking industry, a broker may threaten to post false negative reviews unless a trucking company complies with unreasonable demands.

Key Elements of Blackmail:

1. Threat: The broker makes a threat to post false negative reviews.
2. Demand: The broker demands money, services, or other benefits from the trucking company.
3. Intent: The broker’s intent is to coerce the trucking company into compliance.

While blackmail is primarily addressed under criminal statutes, it may also intersect with civil remedies, particularly when economic harm is involved.

Legal Recourse:

If you suspect you are a victim of blackmail or extortion, you should consider filing a police report with your local police department. Your state attorney general’s office may also have resources and direct you to the appropriate agency to lodge your complaint. Be ready to provide evidence of your claims, including any correspondence such as emails or text messages that show the illegal conduct.

Civil Extortion

Civil extortion is a tort that provides a legal remedy for victims of coercive threats used to obtain money, property, or other benefits. In the context of the trucking industry, a broker’s threat to post false negative reviews to extract financial or other concessions from a trucking company can be actionable as civil extortion.

Key Elements of Civil Extortion:

1. Threat or Coercion: The broker threatens to post false negative reviews.
2. Intent to Obtain Benefits: The broker aims to obtain money, services, or other benefits through the threat.
3. Lack of Consent: The trucking company complies with the broker’s demands due to the threat.
4. Damages: The trucking company suffers actual harm, such as financial losses or damage to reputation from compliance with the illegal demand.

Legal Recourse:

Victims of civil extortion can file a lawsuit seeking compensatory damages for financial losses and emotional distress, punitive damages to punish the broker’s egregious conduct, and injunctive relief to prevent further threats or actions. Evidence showing the threat – like emails or text messages – are critical in the civil context as well. Additionally, actual damages from compliance must be shown – a mere threat of harm is not sufficient to sustain a civil action for extortion.

Economic Duress

Economic duress occurs when one party uses wrongful threats or pressure to force another party into a contractual agreement. In the trucking industry, a broker’s threat to post false negative reviews to coerce a trucking company into accepting unfavorable contract terms can constitute economic duress. For example, if broker threatens to “FreightGuard” a carrier unless the carrier agrees to a rate reduction, additional routing, or other costly or unfavorable modifications, economic duress may have occurred.

A party seeking to void a contract may affirmatively claim economic duress, but it is more likely to show up as a defense. Where a party seeks to enforce a contract with terms obtained by duress, the defending party can assert economic duress as an affirmative defense.

Key Elements of Economic Duress:

1. Wrongful Threat: The broker threatens to post false negative reviews.
2. Lack of Reasonable Alternatives: The trucking company has no reasonable alternative but to comply with the broker’s demands.
3. Induced Agreement: The threat induces the trucking company to enter into a contract or agreement.
4. Resulting Harm: The trucking company suffers harm as a result of the coerced agreement.

Legal Recourse:

Trucking companies can seek to void contracts entered into under economic duress, as these agreements are not considered the result of free and voluntary consent. Additionally, they may pursue damages for any financial losses incurred due to the coerced agreement.

Conclusion

Threats to post false negative reviews can severely impact a trucking company’s reputation and business operations. Understanding the legal remedies available—blackmail, civil extortion, and economic duress—empowers trucking companies to take action against unscrupulous brokers. At Artaev at Law PLLC, we are committed to protecting your business interests and ensuring that you are not victimized by unlawful threats. If you find yourself facing such a situation, we are here to help you navigate the legal landscape and protect your rights.

Have more questions? Contact our firm by email or call us today to set up your free initial consultation.

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