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The impact of defamation and disparagement on a business

On Behalf of | Dec 8, 2023 | Business Litigation

If you have a business, you know its success depends on its reputation in the community. If you or your business are the subject of defamation or business disparagement, it can deter customers. They may no longer trust the business or may decide to distance themselves from it.

In addition, your business can suffer serious financial consequences if customers choose to purchase from a competitor instead. If you have employees, they may look elsewhere for employment if they are concerned about job stability.

Defamation and business disparagement

Defamation refers to false statements that harm your reputation and it is either spoken, called slander, or written, called libel. In order to demonstrate defamation, you must show that the statement is false, it was communicated to a third party, you were identified as the subject of the defamation, and you suffered reputational harm.

You can be defamed if someone posts false information on social media or through traditional media, like publishing statements in a newspaper or magazine.

Business disparagement happens when a person makes false statements about the business or its products and services. This often occurs when a competitor provides false information or negative reviews to discourage customers from using that business.

Addressing false statements

You may have several options to address defamation or business disparagement, including sending a letter demanding that the false statements are removed or retracted.

You can also file a lawsuit for damages and for injunctive relief. Injunctive relief can stop the spread of false information. Damages can help reimburse you for your financial losses.