Companies may go to great lengths to successfully compete against one another. Competition can inspire innovation. It can drive down prices. It can help particularly skilled workers command better wages.
Unfortunately, competition can also inspire underhanded and unethical attempts to manipulate the market. Branding and marketing efforts should typically focus on highlighting the best qualities of one company, not damaging the reputation of another.
In some cases, one company may notice a substantial decline in customer or client inquiries. When they investigate, they may discover signs of commercial disparagement. Commercial disparagement can do real damage to business operations. In some cases, business owners and executives may need to file lawsuits to address ongoing commercial disparagement.
What constitutes commercial disparagement?
There are several requirements for written or verbal communication to constitute commercial disparagement. The first and most important is that the statements made about a brand, its services or its products are inaccurate or false. Exaggerated and fabricated complaints shared as though they are legitimate reviews can constitute commercial disparagement.
The second requirement is that the statements had a negative impact on the business. Finally, the company alleging commercial disparagement must show that the party that spoke or published the inaccurate information did so with malice or with a willful disregard for the impact of their statement on the other party.
Publishing fake reviews online or slandering another company when speaking with consumers or even vendors could constitute commercial disparagement. Unlike defamation, which comes from people, commercial disparagement originates with another company.
Reviewing potentially disparaging comments and online content with a skilled legal team can help business leaders evaluate their options. A successful lawsuit could lead to the end of damaging disparagement possibly even compensation for the harm caused by commercial disparagement.