Commercial Disparagement

What is commercial disparagement?

Commercial disparagement (or trade libel) occurs when a derogatory statement harms the economic interests of a business or professional practice. The false statement causes the business monetary harm by maligning the quality of the business’s products or services.

Damages in a commercial disparagement case are more difficult to prove than in a defamation case that concerns harm to the reputation of a person. Commercial disparagement requires that the defendant publish a false, injurious and unprivileged statement that causes quantifiable damages to the plaintiff’s business.

The causative link between the statement and the economic loss is often difficult to prove in court. The defendant’s defamatory statement must have resulted in a drop in sales to identifiable customers. Internet-era exceptions such as “widespread dissemination” provide some leeway, but thorough analysis and documentation of lost profits are still required. Economists and accountants are usually needed by both plaintiff and defendant.

How can RPC help?

RPC has the accountants, economists, statisticians and data analysts to provide plaintiffs and defendants with expert reports and testimony. We also assist attorneys during the discovery process with data requests and questions for depositions. We provide preliminary review of documents and discussion of the commercial disparagement case at no obligation.