Malicious Falsehood

What is Malicious Falsehood in Tort Law?

Quick Definition

Malicious falsehood is a tort that protects individuals and businesses against false statements made maliciously that cause financial loss. Unlike defamation, the focus is on economic damage rather than harm to reputation alone. The claimant must usually prove that the statement was false, published maliciously, and caused actual loss.

In Context

Malicious falsehood commonly arises in commercial settings where false claims are made about a person’s goods, business, or property interests. For example, falsely stating that a company’s products are unsafe or counterfeit may discourage customers and lead to financial loss. In Ratcliffe v Evans (1892), the court recognised that publishing false information about a business could support liability where measurable economic damage resulted. Malice does not necessarily mean personal hatred; it includes situations where the defendant knew the statement was false or acted recklessly as to its truth. The tort differs from defamation because special damage often needs to be shown unless statutory exceptions apply under the Defamation Act 1952. Courts aim to balance protection from dishonest commercial attacks with freedom of expression and fair competition.

See Also

• Defamation

• Conspiracy

• Intimidation

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