How can I stop this slander from a fellow trader!?

I own and run a business selling goods to the public. A similar business operates in the same town and it has been brought to my attention they are discrediting the service i give. Claiming I supply sub-standard goods and rip everyone off who comes through my door. Totally untrue! This will obviously put potential customers off. What action can I take to put a stop to this? What evidence would i need to pursue it through the courts?
Any help much appreciated.

If you know that he is slandering your business, I assume you have heard from customers to whom he has been making these statements. Ask them if they would be willing to write down a statement as to what they were told by him and then have them sign it. This is your proof. It would also help if you have any documentation from your vendors certifying the quality of the goods that they provide to you. You can now sue him for slander claiming that he is defaming your business and causing financial harm.

Due to the cost and difficulty in pursuing matters like this through the courts, you may want to present him with a copy of the witness statements along with a notice of your intent to sue and see if he would be willing to sign a settlement agreement in which he agrees to stop making such statements. He very well may prefer to sign this agreement rather than go to court. If so, the problem might be solved. If he continues to slander your business, you still have the witness statements and you now also have a case against him for breaching the settlement agreement.

Please do not try to secretly record him. It is illegal in most states to record someone without their knowledge and consent. Even where legal, it is not admissable in court.

Gather all your evidence that you have about your business and his slander towards you and take him to court. You can file papers against him for slander but u need evidence of the slander to make ur case and if the judge feels he did do the slander in a hateful way in order that your business was affected he gets charged
Ive seen this happen alot, ppl talk bad about other ppl bc of some unresolved problems or grudges and it makes them loose business due to it, and thats illegal... Slander can say how bad their food is or if its dirty. Might not even be true but even if it is.. he tried to deface your business with slander.

Defamation proceedings are extremely expensive and should be used only as a last resort. However, mention of High Court Writs (without legal aid being available) can be off putting.

I would confront the business and tell them proceedings will be brought against them if they don't stop. That might frighten them from carrying on but I would also take out an advert in the local paper saying that malicious gossip is being spread about your business and proceedings will be brought against anyone defaming you. Give yourself a good write up too.

Fight fire with fire - you have nothing to lose (except your good name if you let it carry on).

Good luck.