Business Disparagement Laws

Libel or Business Disparagement Laws

Business Disparagement Laws

In the commercial world, business owners will often threaten to sue opposing parties for business disparagement. Disparagement of business is defined as false and ill-natured statements intentionally made against a business in order to create financial harm. Business disparagement falls under privacy law.

In modern times, an common examples of disparagement of business is when a false review is created in order to damage a business’ financial success.

For a claim to be considered disparagement of business, specific elements must exist. Firstly, the disparagement must have to be published and public (not said privately). In addition: the published statements must be false, must have negatively impacted the reputation or finances of the business, and must have malicious intent. A plaintiff must prove that the disparaging statement did cause a loss of sales and/or customers.

Since the rise of social media, business disparagement has become more ambiguous because there is ample opportunity to make slanderous comments on a variety of platforms. The standards of disparagement laws still apply. False allegations can be argued and defended with the help of an experienced lawyer. With the help of a lawyer, defendants can argue that elements have not been proven the plaintiff.


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