Injurious falsehood occurs when false statements are made about a person or business, causing harm. There are two forms of injurious falsehood: disparagement, which damages a person’s reputation, and trade disparagement, which damages a business’s reputation.
Injurious falsehood refers to a form of defamation wherein false statements are made about an individual or business, leading to damage to their reputation or financial status. There are two categories of injurious falsehood: Disparagement, which involves making false statements about a person or business that harm their reputation, and Trade Disparagement, which entails making false statements about a business’s products or services that harm their financial standing. For instance, a restaurant owner spreading false rumors about a competitor’s food being contaminated, resulting in customers avoiding the competitor’s establishment and causing financial harm. Similarly, a company disseminating false information about a competitor’s product being unsafe, leading customers to refrain from purchasing it and causing financial harm to the competitor. These examples highlight how injurious falsehood can detrimentally impact an individual or business’s reputation or financial standing. It is crucial to prioritize honesty and refrain from making false statements that could harm others.
An injurious falsehood, also known as trade libel or product disparagement, refers to a false statement made about a business or its products that causes harm to its reputation or financial standing.
To establish a claim for injurious falsehood, the following elements must typically be proven:
The false statement was published or communicated to a third party.
The defendant acted with knowledge of the falsity or with reckless disregard for the truth.
Yes, injurious falsehood can be considered a form of defamation. However, unlike traditional defamation, which involves false statements about a person, injurious falsehood specifically pertains to false statements about a business or its products.
Generally, opinions are protected under the freedom of speech and are not considered injurious falsehood. However, if an opinion is presented as a statement of fact and causes harm to a business’s reputation or financial standing, it may be considered injurious falsehood.
Yes, a business can sue for injurious falsehood if the false statement was made by a competitor. Competitors are not immune from liability for making false statements that harm another business’s reputation or financial standing.
If successful in an injurious falsehood lawsuit, the plaintiff may be awarded compensatory damages, which aim to compensate for the harm caused, as well as punitive damages, which are intended to punish the defendant for their wrongful conduct.
While freedom of speech is a fundamental right, it is not an absolute defence against injurious falsehood. If the false statement is proven to have caused harm to a business’s reputation or financial standing, the defendant’s freedom of speech may be outweighed by the plaintiff’s right to protect their business interests.
Yes, injurious falsehood can be committed online. False statements made on websites, social media platforms, or in online reviews that harm a business’s reputation or financial standing can be subject to an injurious falsehood claim.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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