Usually, I confront the gossiper. That has squashed it quickly. The other way I’ve handled it is to email the gossiper and as many parties that you think that person has “told” the rumor to. Then, politely say “I’ve heard word through the grapevine that I (fill in the blank), well, I would just like to clear the table of this….Or you can just simply state the facts of whatever you have to say without addressing the rumor you heard at all.
Awwwww…..My MIL is great at gossiping. I have now become an expert gossiper stopper.