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 North Carolina, business defamation, also known as trade libel or business disparagement, is a tort that allows a business to seek damages for false statements that harm its reputation. The elements of a business defamation claim in North Carolina 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. North Carolina follows the general principles of defamation law, which require a plaintiff to prove that the defendant made a false statement that resulted in harm to the plaintiff's business reputation. If a business successfully proves that the defendant published false and disparaging information that caused actual damages, the business may also be entitled to recover punitive damages, which are designed to punish the defendant for particularly egregious conduct. These laws are derived from both state statutes and common law (court opinions). It is important for businesses and individuals to be aware of these legal standards to avoid potential liability for business defamation.