defamation

Definition

Defamation is when someone makes a false statement of fact about you or your business to other people, and that false statement causes real harm to your reputation. The statement has to be presented as a fact, not just an opinion, and the person making it has to be wrong about what they said. If the false statement is written or published, it's called libel, and if it's spoken out loud, it's called slander.

Example

If a competitor tells your customers that your restaurant failed a health inspection when it never actually did, and you lose business because of it, that could be defamation. A true statement, even if it hurts your reputation, is never defamation.

Watch Out

Negative online reviews can feel like defamation, but courts generally protect opinions, so focus on whether the person stated something false as if it were a fact before assuming you have a case.

See which terms appear in your contract?

This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.