Business Defamation vs. Disparagement

Business owners have a lot to deal with when it comes to managing their business. Not only do they have to make money but they also have to protect their reputation.

As a child, we may have been taught to ignore the mean things that people say to us, but when you’re a business owner, you have to take these things to heart. Any criticism about your business, whether or not it is indeed true, can damage your reputation.

Bad reviews and untrue comments about the company or its owner can spread rapidly, causing customers to avoid a business. This can lead to decreased revenues and even cause a business to shut down.

In business, there are two terms to be aware of: defamation and disparagement. Business defamation and disparagement are both concepts related to making negative statements about a business entity, product, or service. They are often used interchangeably, but they are distinct in their scope. Here’s what you need to know.

Defamation

Business defamation involves making false statements about a business entity or its reputation, which harms the business’s goodwill or financial interests. These false statements must be communicated to a third party. They must be proven to be false and causing injury to the business’s reputation.

Defamation can take the form of libel (written defamation) or slander (spoken defamation). In the context of businesses, libel often occurs through written statements such as published articles, social media posts, or product reviews.

To prove defamation, the plaintiff typically needs to demonstrate that the defendant made a false statement of fact about the business, that the statement was communicated to others, and that it caused harm to the business’s reputation or financial interests.

 Disparagement

Disparagement is similar but focuses on a business’ products or services. It is defined as the act of making false or misleading statements about a business’s products, services, or goods.

Disparagement is often perpetrated by a competitor business so it is often considered a form of unfair competition. It can occur through false advertising and deceptive trade practices.

Contact a Business Litigation Lawyer Today

Owning a business is a challenging task. There is a lot involved, including reputation management. Defamation and disparagement can cause a lot of harm to your business.

Count on a Bradenton defamation lawyer from Cahall Law Firm to help obtain compensation for you if you are a defamation victim. We understand how badly words can hurt. Schedule a free consultation by filling out the online form or calling (941) 281-2019.

Source:
law.cornell.edu/wex/defamation