Business defamation—also known as business disparagement, business and commercial disparagement, or trade libel—is a claim or cause of action for damages that may be made by a business when another person or entity has defamed the business—usually by making untrue statements of fact, whether spoken (slander) or written (libel), that damage the business.
Business defamation laws vary from state to state but the elements of a business defamation claim are generally:
• the defendant published false and disparaging information about the plaintiff;
• the defendant published the words with malice;
• the defendant published the words without privilege; and
• the publication caused special damages.
Special damages are economic damages, such as lost income.
And if the plaintiff proves the defendant published false, disparaging information, and caused the plaintiff to suffer actual damages, the plaintiff is also entitled to recover exemplary damages from the defendant.
Business defamation laws may be located in a state’s statutes or in its court opinions (common law or case law).
In Texas, business defamation, also known as business disparagement, is recognized as a cause of action when false statements are made about a business that result in damage to the business's reputation or economic interests. The elements of a business defamation claim in Texas typically include the publication of false and disparaging information about the business, publication with malice, lack of privilege in the publication, and the occurrence of special damages, which refer to economic losses such as lost income. Texas law also allows for the recovery of exemplary damages, which are punitive in nature, if the plaintiff can prove that the defendant published false and disparaging information that caused actual damages. These laws are derived from both Texas statutes and case law. It is important for businesses to consult with an attorney to understand the specifics of their situation and the potential for a business defamation claim under Texas law.
