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Truth is a valid defense in any libel or slander case.

If someone who owes you doesn't pay you, you are well within your rights to tell people about it.

What probably happened is a small business wanted a website, so the web designer designs the website and buys them a domain name. The deliverables are a finished website along with a domain name and hosting.

If the client doesn't pay, then they own neither the domain name, the hosting, nor the design, and the web designer can do whatever the hell he wants with all three.