disparagement
Definition
Disparagement is when someone makes false statements that harm your business's reputation or damage sales of your products or services. Unlike regular defamation, which is about attacks on a person's character, disparagement specifically targets your business, goods, or services. To win a disparagement claim, you typically need to prove the statement was false, the person knew it was false or didn't care, and it actually caused you financial harm.
Example
A competitor tells potential customers that your restaurant failed its health inspection when it actually passed with flying colors, causing several large catering contracts to fall through.
Watch Out
Many non-disclosure and partnership agreements include anti-disparagement clauses that can prevent you from publicly criticizing the other party even after the business relationship ends, so read those sections carefully before signing.
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.