I’m skeptical of the claim that an average person has the power to ruin someone’s reputation as a punishment for wrongdoing. Our society is large and extremely anonymous. People can easily pick up and move to another town, if that’s even necessary at all.
Generally I think the only people whose reputation gets damaged severely enough to follow them around for the rest of their life are public figures or infamous criminals such as murderers and rapists.
I personally have been ripped off quite severely by an unscrupulous HVAC company and I don’t see much recourse. I could try to damage their reputation but then they could sue me for libel. I think their unscrupulous behaviour is likely protected by the enormous contracts they make their customers sign and the government gives them the power to have your natural gas supply shut off if you refuse a costly repair they deem necessary.