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 Pennsylvania, business defamation, also known as trade libel or commercial disparagement, is a tort that allows a business to seek damages for false statements that harm its reputation or financial interests. The elements of a business defamation claim in Pennsylvania typically include the publication of a false and disparaging statement about the business, publication with malice or reckless disregard for the truth, lack of privilege in making the statement, and the occurrence of special damages, which are typically economic losses such as lost profits. Pennsylvania law requires that the plaintiff prove actual harm to its business reputation or economic interests. If a plaintiff successfully proves that the defendant published false and disparaging information that caused actual damages, the plaintiff may also be entitled to recover exemplary (punitive) damages, which are intended to punish the defendant and deter similar conduct in the future. These laws are derived from both Pennsylvania statutes and case law precedents established by the courts.