Usage of a public statement in business?

[MDC29]

Can a business release a public statement of fact about its competitor without it being grounds for defamation? The statement would only utilize published statements of said competitor and the source of all statements would be clearly cited so that any member of the public could verify..

1) Is this ever allowed?
2) If so, any guidelines about creating such a statement?

 

[quincy]

Can you provide an example of the type of statement you are talking about (without mentioning the company in question)?

There could be a problem, but probably not with defamation.

 

[MDC29]

A failing competitor suddenly used our well known attribute of our advertising. He also used a previously published description of our product. It's essentially a situation of plagiarism. A lawsuit, for a number of reasons is not feasible, nor prudent. However, we would like to issue a public statement to clear the misconceptions created by this offending party's use of our good will. Much like you cannot see the big picture when looking at the pieces of a puzzle scattered on the table, this competitor made many published statements, disconnected over time, that when put together (in a public statement of fact) will demonstrate exactly what we already know to be the truth.

 

[MDC29]

Further, the public statement, again, using only published statements by this party, will demonstrate all the contradictions and inconsistencies and the whole reason that the public statement is necessary.

 

[quincy]

If your competitor is "failing" already, I am not sure why you feel the need to publish a statement at all. It would be legally safer to let him fail on his own.

That said, it would not ordinarily be defamation to publish true statements of fact. Truth is a pretty solid defense against any claim of defamation.

However, true statements of fact can be worded in such a way, or combined together in such a way, or edited in such a way, that the final presentation is not exactly the complete and honest truth. Political ads are a good example of this.

Unlike political speech which is offered the greatest protection under our laws, it is legally important with "commercial" speech (statements made for the purpose of business or trade) that what is said does not distort, mislead, misrepresent, exaggerate or deceive consumers. This becomes even more important when the statements made are about a competing business that may suffer economic harm as a result of a publication.

I recommend that you review with an attorney in your area the exact text of what you intend to publish, prior to any publication - if you are convinced it is necessary to publish anything at all. This review by an attorney is even wiser if, as you say, a lawsuit for you is "not feasible, nor prudent." Otherwise you could find the choice of a lawsuit is not yours to make. You could wind up being a defendant.

 

[MDC29]

Quincy, thanks for your reply. We're basically on the same page as far as what I thought about the public statement. And yes, we do intend to have it reviewed by an attorney prior to publication.

 

[quincy]

I have a feeling any attorney you see will advise against making any public statement, but good luck with it all.