The publisher of a false and
disparaging statement that
harms the interests of another
is liable for any resulting
pecuniary loss if the publisher:
a: intended
to harm the
other's
interests OR
recognized or
should have
recognized
that it was
likely to do
so, AND
b: knew that
statement
was false or
acted in
reckless
disregard of
its
truth
or
falsity
(actual
malice)
Disparagement: is understood to cast doubt upon the quality of
another's land, products or services and the publisher intends the
statement to cast the doubt, OR the recipient's understanding of it
as casting the doubt was reasonable
Disparagement vs. Defamation
Disparagement:
involves
property or
economic
interests, must
prove special
damages
(pecuniary loss)
Defamation: involves personal
reputation, to be defamatory
a disparaging stmt must
allege dishonesty, deception
or other misconduct, must
prove special damages
(pecuniary loss)
Pecuniary Loss: direct and immediate loss caused by
conduct of potential customers, AND expense of
counteracting the disparagement
Competitors' Privilege
A person may make an
unduly favorable
comparison of the
quality of his or her
own goods or services
with those of a
competitor.
The person need not
believe that his own things
are superior to those of the
competitor.
The comparison may not
contain false facts
regarding the rival's goods
or services.
Other defenses:
Truth
Fair report privilege
Lanham Act 43(a)(2)
Imposes civil liability on anyone who:
in
connection
with goods
or services
in
commerce,
conveys a
false or
misleading
description
in
advertising
or
promotions
that misrepresents
the nature,
characteristics,
qualities, or
geographic origin of
her or another's
goods, services, or
commercial activities
Elements of Action under 43(a)(2)
False/misleading stmt about
defendant's product or another's,
actual deception or a tendency to
deceive the intended audience, the
deception is material, stmt
disseminated to general public, stmt is
commercial speech, the goods or
services traveled interstate
commerce, a likelihood of injury to the
plaintiff