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 New York, 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 New York typically include: (1) a false statement about the plaintiff, (2) publication to a third party, (3) fault amounting at least to negligence on the part of the publisher, and (4) special damages or actual injury. New York courts require that the plaintiff prove actual malice if the business is a public figure or the issue is of public concern. Special damages, which are a necessary element of the claim, refer to the direct economic loss that can be attributed to the defamation, such as a decrease in sales or loss of clients. Exemplary damages, also known as punitive damages, may be awarded if the plaintiff can prove that the defendant acted with malice or reckless disregard for the truth. Business defamation claims in New York are governed by both statutory law and common law precedents.