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 Arizona, 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 required to establish a business defamation claim in Arizona are similar to those in other states and generally include proving that the defendant published false and disparaging information about the business, did so with malice, without any privilege, and that the publication caused the business to suffer economic damages, such as lost income. Arizona law also allows for the recovery of exemplary damages, which are awarded as a punishment and deterrent if the plaintiff can prove actual damages resulting from the defamation. Business defamation laws in Arizona can be found in state statutes as well as in common law, which is developed through court opinions and case law.