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 Hawaii, business defamation, also known as trade libel or business disparagement, is a tort that allows a business to seek damages if another party has made false statements that harm the business's reputation. The elements of a business defamation claim in Hawaii typically include the publication of false and disparaging information about the business, publication with malice, lack of privilege, and the occurrence of special damages, which refer to economic losses such as lost income. Hawaii law requires that the plaintiff prove these elements to succeed in a business defamation claim. Additionally, if the plaintiff can demonstrate actual damages resulting from the defamation, they may also be entitled to recover exemplary (punitive) damages. These laws are derived from both Hawaii's statutes and its common law, as established through court opinions. It is important for businesses and individuals to be aware of these legal standards to avoid potential liability for business defamation and to understand their rights if they believe they have been defamed.