You may have a cause of action against the shop owner who is displaying your photo with the clear implication you are a "thief." It is hard to determine whether you would have any cause of action against the first shopkeeper.
I suggest you consult with local counsel and, perhaps, have local counsel write a letter to the shop owner who is displaying your photo. If there is no truth to the allegation I believe the shop owner would want to take it down to avoid a defamation action. Good luck.
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I would not refer to this as cyber bullying. This has the definite appearance of defamation. How many people are involved would depend on what was said between them about you.
These are difficult cases. This is one of those rare times when a cease and desist letter from an attorney may be beneficial.
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I agree with my colleagues. This does not sound like cyber-bullying to me, as much as defamation. However, defamation cases are expensive, exhausting and emotionally draining to pursue. A letter from a local attorney might be enough to do the job, however.
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Best bet is to spend a couple hundred bucks and have a local attorney write them a cease and desist letter.
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