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 Arkansas, business defamation, also known as trade libel or business disparagement, is a legal claim that a business can make if another party has made false statements that harm the business's reputation. The elements of a business defamation claim in Arkansas 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. Arkansas law also allows for the recovery of exemplary damages, which are awarded as a punishment and deterrent if the plaintiff can prove actual damages were suffered due to the false and disparaging information. These laws are derived from both state statutes and Arkansas case law. It is important for businesses in Arkansas to consult with an attorney to understand the specific requirements and legal nuances involved in pursuing a business defamation claim.