Commercial Defamation and Trade Libel

While defamation can be applied to public figures as well as private, it doesn't always target a person. Defamation against a business, or against an individual in a business setting, is known as commercial defamation. In today's competitive business world, it is common for companies to say nasty things about their competitors in order to demonstrate why they are a better choice than their competitor for consumers to choose. Although most of us have come to expect advertisements which bash the opposition, such practices are only legal so long as they remain within the bounds of the truth. When a company goes too far and begins accusing its competitor of conduct which they have not participated in, then the competitor will have a valid basis to enlist a Chicago commercial defamation lawyer in bringing a lawsuit.

One problem that plaintiffs face when alleging defamation is that they must be able to prove that they suffered actual damage (usually financial losses) as a result of the defamation. This can be difficult to prove. Even if a company experiences a drop in stock prices, for example, following the release of a competitor's defamatory advertisement, the company would still have to provide evidence that the drop in stock prices was a direct result of the advertisement.

Another requirement for defamation is that the person or company making the defamatory statement knew (or should have known) that the statement was false. If someone claims that the chief executive officer of a company was involved in a pyramid scheme and that person honestly believed that to be true, then she cannot be convicted of defamation. However, most courts will consider the source of the information and determine whether or not the person should have reasonably known that the information was false.

Trade libel is similar to commercial defamation except that, instead of attacking the company or people in the company, it attacks the quality of the company's goods or services. As with commercial defamation, companies must be careful when using the drawbacks of a competitor's goods in order to tout the benefits of their own products or services. If it can be reliably shown that it resulted in a transfer of customers to them from their competitor, the competitor may have grounds for a trade libel lawsuit. Our commercial defamation attorneys can advise Chicago clients on whether this may be the case in their circumstances.

Competing companies are not the only entities who need to be aware of trade libel lawsuits. With the dawn of the digital age, consumers have taken to the Internet to both praise and condemn the companies that they patronize. If a consumer posts a defamatory statement online about a product that they purchased, they could find themselves facing a lawsuit from the company that provided the product or service.

Likewise, companies need to be aware that, in order to be on the lookout for possible trade libel against their goods, they must look beyond information that their competitors might be spreading. Included in their search should be online reviews from consumers who have taken to the Internet to express their vitriol.

The Chicago commercial defamation attorneys at Lubin Austermuehle, P.C. have decades of experience both pursuing and defending commercial defamation lawsuits. Based in Elmhurst and downtown Chicago, our attorneys take cases from Aurora and Elgin and many other cities throughout Illinois. To consult with a knowledgeable commercial defamation lawyer in Chicago today, contact us online or you can call us at 630-333-0333.

Client Reviews
★★★★★
"I was referred to Peter Lubin from someone in the car business to handle a law suit. From the moment I made the appointment Peter and his staff were outstanding. This wasn't an easy case, most lawyers had turned me down. However, Peter took the time to meet with me and review everything. He took on the case, and constantly communicated with me about updates and case information. We beat this non-compete agreement case in record time. I would use him again and recommend him to my closest family and friends. 5 stars is not enough to thank him for his service." Sebastian R.
★★★★★
"I worked on two occasions with Peter Lubin and his staff. They took their time with me and discussed each and every item in detail. The group makes you feel like you are part of the family and not just another hourly charge. I recommend Peter to anyone who asks me for a referral. If you are looking for a top notch attorney at a reasonable rate, look no further than Lubin Austermuehle." Kurt A.
★★★★★
"Excellent law firm. My case was a complicated arbitration dispute from another state. Was handled with utmost professionalism and decency. Mr. Peter Lubin was able to successfully resolve the case on my behalf and got me a very favorable settlement. Would recommend to anyone looking for a serious law firm. Great staff and great lawyers!" Albey L.
★★★★★
"I have known Peter Lubin for over 30 years. He has represented me on occasion with sound legal advice. He is a shrewd and tough negotiator leading to positive outcomes and averting prolonged legal hassles in court. He comes from a family with a legal pedigree and deep roots in Chicago's top legal community. You want him on your case. You need him on your opponents case. He won't stop fighting until he wins." Christopher G.
★★★★★
"Peter and his team helped us with an auto fraud case. They communicated well (timely and very responsive), investigated deeply, and negotiated a very good settlement. We were able to resolve our significant issue without a large burden and in a manner that allowed for us to come out ahead. I'd recommend Peter and his team strongly!" R.J. Callahan
★★★★★
"Peter was really nice and helpful when I came to him with an initial question about a non-compete. Would definitely reach out again, recommended to everyone." Johannes B.