Lawyer Weekly has a wonderful article up concerning how law students often are warned to keep their online reputation’s clean of any controversy and to act very professional on the web. It is essential that young professionals monitor which pictures are posted of them on facebook, what they say on blogs, and even how professional their email address appears to be.
http://www.lawyersweekly.ca/index.php?section=article&volume=29&number=22&article=2

Can mistaken identity hurt a business online? It seems so, if one is to take this article at face value. At any rate, it shows how much effect internet libel can have on a business. Any business that suffers from this sort of mistaken identity should immediately seek out reputation management services.
http://www.endlessplain.com/2008/03/10/mistaken-identity-a-reputation-management-problem/

It only takes one disgruntled employee, misanthrope, or unsatisfied customer to drag down a business’ entire online reputation. Search engines are quite susceptible to the complaints of customers, which often show up under RipoffReport.com or similar sites. Corporate reputation management exists to help companies publicize themselves positively.
http://www.invesp.com/blog/sales-marketing/common-reputation-management-issues-and-how-to-address-them.html

The guaranteed anonymity of the Internet has always insured that any bully or misanthrope who wants to can say the dirtiest, nastiest, meanest things they want, whether true or not, about anyone. However, there are certainly ways of fighting this libel, such as international reputation management.
http://www.thenorthwestern.com/article/20090924/OSH0602/909240405