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 California, business defamation, also known as trade libel or commercial disparagement, is a tort that allows a business to seek damages for false statements that harm its reputation or economic interests. The elements of a business defamation claim in California are similar to those outlined generally: (1) a false and disparaging statement was made about the business, (2) the statement was published to third parties, (3) the defendant acted with malice or a reckless disregard for the truth, (4) there was a lack of privilege in the publication, and (5) the business suffered special damages as a result, typically economic losses. California law also allows for the recovery of exemplary (punitive) damages if actual damages are proven and the defendant's conduct was willful, fraudulent, or in reckless disregard of the plaintiff's rights. These laws are derived from both statutory law and case law in California. It is important for businesses considering a defamation claim to consult with an attorney to understand the nuances of California law and to ensure that their case is handled properly.