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Defamation of Corporations and Partnerships
Learn what defamation of corporations, partnerships and non-profits and what you can do when a company is a victim of defamation.
This page has been peer-reviewed, fact-checked, and edited by multiple qualified attorneys and legal professionals to ensure substantive accuracy and coverage. Our publication process is robust, following a 16-step content creation and review process.
First, let’s get down the basics and define what exactly business and commercial disparagement is. Note that both terms can be used interchangeably, and from here-on-out, we will refer to it as ‘commercial disparagement’.
Commercial disparagement is the publication of derogatory and false statements and information about a person’s title to his or her property, hir or her business in general, or anything else made with the purpose of discouraging people from dealing with such individual or business.
The tort of commercial disparagement is an all encompassing and broad term, and may also be referred to as:
Regardless of the particular label, a business or person may have an actionable legal claim against another business or person when an oral or written publication of a disparaging statement concerning that business is made.
Commercial disparagement laws and claims exist to allow for fair competition amongst businesses in a capitalistic and progressive economy. The tort of commercial disparagement not only includes false statements about one’s business, but also false statements about the products or services of that business – more aptly named product disparagement.
Defamation Law Tip: Defamation law generally classifies the party making the defamatory statement as a (1) defamer, (2) libeler, (3) slanderer, or (4) famacide.
Commercial disparagement should not be taken lightly. It could mean sink or swim for your business, profession, and ultimate livelihood, therefore, it’s imperative you strike while the iron is hot and take actionable steps towards removing such derogatory information.
Contact the Cleveland-based business and commercial disparagement lawyers of Minc Law. At Minc Law, we have a nearly 100% removal rate, and all for a flat, reasonable fee. Our goals are your goals, so let us fight for you.
Call us today at (216) 373-7706, or schedule a meeting online by filling out our online contact form.
Now, let’s take a look at the elements that make up a commercial disparagement claim. There are four core elements at the heart of every commercial disparagement claim, all of which must be met in order to pursue a successful claim.
As you can see, the tort of commercial disparagement is quite broad. For example, the tort covers an individual’s business reputation, such as an accusation that the business is:
The tort also covers false imputing insolvency to merchants, traders, or others in business, as virtually every business is dependent on some form of credit. Simply put, this means commercial disparagement covers statements alleging a business is likely bankrupt or unable to properly finance its operations.
But, how is commercial disparagement different from defamation of character?
Although commercial disparagement and defamation of character appear similar on their face, it’s important to remember that they are distinct and separate torts.
Brand Management Tip: Interacting with customers who air legitimate feedback is an important brand management technique. Doing so shows your business is transparent, willing to compromise, and communicative.
Let’s also take a look at a lesser known law that is a subset of commercial disparagement and referred to as food disparagement laws.
Also known as “veggie libel laws” or “food libel laws” food disparagement laws allow food manufacturers, producers, and processors to sue a person or group who makes disparaging comments about their food products.
Generally, food disparagement laws have lower burdens of proof, and in some cases, shift the burden of proof to the party being sued. As of March 2018, there are only thirteen states with veggie libel laws in place, including: Alabama, Arizona, Colorado, Florida, Georgia, Idaho, Louisiana, Mississippi, North Dakota, Ohio, Oklahoma, South Dakota, and Texas.
As mentioned above, standards of proof can greatly differ in these cases. For example, in 1998 Oprah Winfrey, and one of her guests, Howard Lyman, were involved in a food disparagement lawsuit – commonly referred to as the “Amarillo Texas beef trial.”
In an airing of one of her shows, Oprah and her guest, Lyman, made disparaging comments about beef and its association with mad cow disease, ultimately creating a media sensation. Both Winfrey and Lyman were sued by beef feedlot operator Paul Engler and the company Cactus Feeders.
As opposed to the traditional libel burden, requiring a plaintiff prove the defendant acted deliberately and knowingly in their dissemination and publication of false statements, Texas food disparagement laws required the plaintiffs prove such statements made by Winfrey and Lyman were not “based on reasonable and reliable scientific inquiry, facts, or data.”
Ultimately, the jury found the statements by Winfrey and Lyman did not constitute libel against the feedlot operator. However, it is worth noting that Oprah no longer speaks publicly on the issue.
Ohio Libel Tip: In contrast to defamation per se, which deems certain statements as so inherently defamatory that the plaintiff need not prove damages for defamation claims, Ohio also follows the legal principle of defamation per quod, which requires plaintiffs prove special damages.
So, what happens when a business sues for commercial disparagement. Are there any defenses the person or business who made the statement can rely on?
Libel Removal Tip: When dealing with defamation, it’s important to understand other names it might go by. Some other common names of libel include: calumny, vilification, or traducement.
If you or your business has been the victim of commercial disparagement (including food disparagement) reach out to our team of highly experienced defamation removal attorneys. We have litigated hundreds of defamation cases, in over 19 states and 3 countries, securing a near 100% removal rate.
Call Minc Law at (216) 373-7706, or schedule a meeting online by filling out our online contact form. Get started now and put the fire out before it spreads. After all, it’s your business’s reputation and future on the line.
One important takeaway from this blog post is that the tort of commercial disparagement is not the same thing as the tort of defamation.
But, how are they different?
When bringing a claim of commercial disparagement, there is no need to prove damages. A common element in defamation claims is the requirement for plaintiffs to prove damages or that the statement was inherently defamatory – also known as defamation per se. To read up more on what constitutes libel and slander per se (defamation per se), check out our detailed blog post, “Is it Libel or Slander?”.
Businesses may sue for both defamation AND commercial disparagement if they so wish. However, damages may be nominal, unless specific damage to a business’s reputation or sales is evidenced.
Common damages that may be awarded include:
Ohio Defamation Law Fact: Ohio courts have jurisdiction over defendants who (1) post defamatory material online that Ohio residents view, (2) that material defames a plaintiff with Ohio domicile, and (3) the defendant knew the plaintiff’s domicile is Ohio.
The law of business and commercial disparagement is complex and should be approached with a strategic game-plan. If you believe that you or your business has suffered business or commercial disparagement, reach out today to schedule a free, no-obligation consultation with the experienced defamation attorneys of Minc Law. Call us at (216) 373-7706, or schedule a meeting online today.
★★★★★
“I had a great experience with Minc Law and especially with the attorney that was on my case Andrew Stebbins. He was very thorough and was able to have all the links that contained my name removed. I would highly recommend Minc Law and Andrew specifically if you are looking for a defamation lawyer to help get your reputation back.”Rich Vild, December 27, 2020
At Minc Law, we have nearly 100% success rate, and have litigated cases in over 19 states and 3 countries, securing hundreds of permanent removals. When working with us, here’s what you can expect.
It’s important to remember that not all laws surrounding commercial disparagement are the same, and may greatly vary by case and state, therefore it’s highly recommend you reach out to experienced professionals who know the ins and outs of commercial disparagement.
Online Reputation Management Tip: You can set up a free SERPLab account, an online keyword tracking tool. Doing so will help you locate your highest ranking keywords, and the various pages they are tied to. It can also help locate the rankings of any negative posts or reviews as well, and provide a base for future action.
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This page has been peer-reviewed, fact-checked, and edited by multiple qualified attorneys and legal professionals to ensure substantive accuracy and coverage. Our publication process is robust, following a 16-step content creation and review process.