Legal Definitions - disparagement

Disparagement refers to the act of making statements that unfairly diminish the reputation, value, or quality of a person, product, property, or business. In a legal context, it often specifically refers to false and harmful statements made about another's goods, services, or property that cause them a measurable financial loss. This is sometimes known as "injurious falsehood," "trade libel," or "slander of title."

• Example 1: False Claims About a Competitor's Product

  A new beverage company launches a line of healthy fruit juices. A rival, established beverage company, concerned about losing market share, begins anonymously spreading false rumors online that the new juices contain artificial sweeteners and harmful preservatives, despite the new company's products being all-natural and organic.

  This illustrates disparagement because the rival company is making untrue and damaging statements about the quality and ingredients of the new company's product. If these false claims lead to a significant drop in sales for the new beverage company, they could potentially pursue a legal claim for disparagement, specifically "trade libel."

• Example 2: Undermining the Value of Property for Sale

  A homeowner is trying to sell a unique vintage car. A former acquaintance, who had a falling out with the homeowner, starts telling potential buyers at car shows and online forums that the car has a rebuilt engine from a different model and significant undisclosed rust damage, neither of which is true.

  This is an example of disparagement because the acquaintance is making false and injurious statements about the condition and authenticity of the homeowner's property (the car). These statements could deter potential buyers, force the homeowner to sell at a lower price, or cause the sale to fall through entirely, resulting in a direct financial loss.

• Example 3: Derogatory Remarks About a Professional Service

  A disgruntled former client of a small architectural firm posts multiple reviews on various online platforms, falsely claiming that the firm consistently misses deadlines, uses substandard materials, and employs unqualified staff, even though the firm has a strong track record of successful projects and satisfied clients.

  This demonstrates disparagement because the former client is making false and damaging statements that discredit the architectural firm's professional reputation and the quality of its services. If these false reviews lead to a measurable loss of new clients or projects for the firm, it could be a basis for a legal claim.