Trade Libel Law
Trade libel law is recognized by most states though the elements of the offense may vary across jurisdictions. In essence, anyone who intentionally writes false and disparaging communications against the products, property or services of a business can be sued for trade libel.
Unlike libel, victims of trade libel can sue for monetary damages for harm caused to his business.
Elements of Trade Libel Law
To being a trade libel suit, a plaintiff must be able to prove that
- The libelous statement is false
- The defendant knew the statement was false, or published the statement with disregard for the truth
- The statement was about the plaintiff’s business
- The plaintiff suffered financial injury due to the statement
A Deeper Look at Trade Libel Law
Internet service providers and website owners are not held liable for comments or discussions held in forms, listservs, blogs and social media outlets, even if they are defamatory. The original creator of the statement is liable.
With the popularity of social media outlets and blogs, a rise is expected in trade libel suits, as it is easy to post quick comments when a patron is disgruntled with a product or service. If the comment is not certainly opinion, the writer of the comment can be libel for product or business defamation.
Trade Libel Laws are Open to Certain Defenses
Which privileges and defenses are recognized by courts is determined on a state to state basis. Generally the following privileges can be employed as legal defenses-
- Substantial truth – any comment, no matter how critical or negative is not libelous if it is the truth
- Opinion statements cannot be considered libel. Nor can Fair comments made about matters of public interest
- Fair Report statements are protected when the information is gathered from public documents or statements made by public officials, if the information is clearly and accurately sourced.
- Neutral Reportage information is generally safe when used to report accusations made by individuals deemed as public figures about other public figures (such as when senators debate public issues).
- Information published from reputable news sources is generally defendable even if the information is false. This privilege, Wire Service Privilege, is a viable defense only if the source is widely recognized as trustworthy and reliable.
The information contained in this article is not to be construed as legal advice and is used only to provide a general outline of elements of trade libel law. If you have been affected by trade libel law issues, seek counsel immediately.