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What is commercial disparagement and how does hurt your business?

One of the many difficulties small business owners in Michigan face is commercial disparagement. This issue involves defamatory remarks or false statements about a business or its products and services.

This tort is also sometimes known as business disparagement, product disparagement, slander of goods, or trade libel. It is essential to understand what it is and how you can keep your business safe from its effects.

What is commercial disparagement?

Under business law commercial disparagement is an affirmative act that hurts the reputation of a business. The business owner must prove that a false statement was expressed to a third party, that the statement harmed its business, and was made with actual malice or reckless disregard for the truth. These factors are essential for proving harm.

How do you make a compelling case?

For a statement to be considered false, it must be treated as a fact instead of an opinion. The defendant has a defense if the statement is accurate despite being damaging.

You must be able to prove that your business suffered monetary losses. In Michigan, the statute of limitations for these cases is a year. Understanding the time frame for pursuing a commercial disparagement cases practice is important.

How do you protect your business from it?

Monitoring reviews, social media, and other online channels is an excellent way to track your reputation. You have more options for addressing negative statements as they arise.

When someone propagates false information against your business, counter it with correct information. Gather evidence of any disparaging statements and harm caused.