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Johnny
16-09-2007, 02:57 AM
Firm sues forum to silence critics
September 12, 2007 - 1:06PM

In a move that could set a nasty precedent for Australian website operators and their users, a software firm is suing a community website over comments published on its message board.

The firm, 2Clix, is suing the owner of the popular broadband community site Whirlpool, Simon Wright, for "injurious falsehood", asking for $150,000 in damages and an injunction requiring Whirlpool to remove forum threads highly critical of 2Clix's accounting software.

Dale Clapperton, chairman of the online users lobby group Electronic Frontiers Australia, said 2Clix was using the law to silence its critics.

He said if Wright lost "it might mean the end of criticising companies' products and services online", as "any company will be able to demand that people's criticisms of them be deleted off websites, and if they don't comply they'll sue".

Amanda Stickley, a senior law lecturer at the Queensland University of Technology, said if 2Clix won there would be severe consequences for website operators as they would have to be "very vigilant in checking material on the website and remove anything that could cause injury to someone's business reputation".

In a statement of claim filed with the Supreme Court of Queensland, 2Clix said the comments, published in two threads between between late last year and July this year, led it to sustain "a severe downturn in monthly sales".

It specifically referenced more than 30 comments by Whirlpool users, many strongly advising people to avoid the software at all costs and complaining that advertised features were not actually available in the product.

One of the comments cited by 2Clix read: "The software became such a problem that we threw it out recently ... We stuck with it for over two years but in the end the many hundreds of lost hours of work and high stress levels was not worth it."

2Clix claimed the statements were both false and malicious, and said it contacted Whirlpool about the matter this year but Whirlpool refused to take the forum threads down.

Wright did not respond to requests for comment, while a 2Clix spokesman this morning declined to comment.

But Stickley said it would be very difficult for 2Clix to successfully sue Wright for injurious falsehood over comments made by Whirlpool users.

It would have to prove the statements were false, that they were made in malice, that 2Clix actually suffered damage in the form of monetary loss and, critically, that Wright had intended to cause 2Clix monetary loss by allowing the material to remain on the website.

"I don't think you could actually prove that for a web operator, that they personally intended the damage because of their malicious intention, especially when it's posted by a third party that they've got no relationship to," Stickley said.

But Whirlpool isn't taking any chances, asking its users in a statement published on the website to "refrain from doing anything that might expose Simon to contempt of court such as making statements that prejudge the outcome of the case".

The statement said Whirlpool, which has more than 180,000 registered users, believed the case was without merit and that it would "defend the matter vigorously, despite being a community website with little resources".

Whirlpool users have already begun donating money to the site to help Wright cover any legal costs. Some claim to have donated more than $1000 through Paypal.
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Captain
16-09-2007, 04:27 AM
You'd think they would need to sue the person(s) that actually defamed them, not the media. It would set an odd precedent for all media, inc newspapers, radio, TV etc.
I guess the net is different as the stuff stays there; do a search on the company's name and up it all comes. Interesting.

Birdman
16-09-2007, 09:20 AM
funny thing is they are still damaging themselves as i have heard quite a few that ae in charge of software for there companies say they wouldnt buy 2clix software now even if it was good because of there bully tactics

its a ridiculous law that has been introduced, just like a lt of stupid laws we have seen come into place..... How does it happen...... oh yeah with a dumb fuck for a prime minister we got no hope ..... forgot about that

dungbeetle
16-09-2007, 10:17 AM
hmmm be good to see the outcome of that. at least we will know if we can rag on shit products on here, or if we just need to rag on them via pm!!:lmao:

Captain
16-09-2007, 11:09 AM
This is why it's important to remain anonymous. I know of a guy who used his real name to express some rather controversial opinons, and he got bagged online extensively for it. Years later, the stuff is still there. Do a google seach under his name and there it is - and given that he trades under his own name that's pretty harsh. Yes he was stupid, but that's a heavy price to pay.

jasonbw
16-09-2007, 11:16 AM
Good outcome or not, its already going to change things. Its not free for Whirlpool to defend itself, imagine the founders of RATs actually having to pay out of their own pocket to defend what others wrote on this site!!!

But...

Unlike Whirlpool, our forum is a 'register to enter' type... so search engines dont pickup our threads.... It'd be interesting to know if were classed as a public or private or club forum and what legal diff there is. Like a parking lot protected by a boom-gate, public road rules dont apply to those!

If I was pissed off with a company Id be happy to rag the shit out of them to warn others, but hell no if it means the site I'm on pays for my mistake... not that there is anyone who CAN even pay... WTF is this legal shit... its wrong! Anyway, I've heard bad stuff and just passed it on quietly via PM.. wonder if this is the future.

MadHatter
16-09-2007, 12:59 PM
We will be watching:hatter:

lilninja
16-09-2007, 01:03 PM
what ever happened to the freedom of speach and iformation act?

To be ale to express your opinions to whoever, whenever?

Kat00
16-09-2007, 01:19 PM
The firm, 2Clix, is suing the owner of the popular broadband community site Whirlpool, Simon Wright, for "injurious falsehood", asking for $150,000 in damages and an injunction requiring Whirlpool to remove forum threads highly critical of 2Clix's accounting software.



Fortunately, when we were recently contacted by a third party with a request for us to "clean up" a particular thread, an injunction wasn`t required.

Its for this exact reason why I was edgy the moment the thread in question was posted on the forum.

Wiccad
16-09-2007, 01:32 PM
The long and the short of Liable in NSW at least is that basically any accusation can be deamed as liable weather it is based in fact or not. The only non liable way of presenting such accusations is to present them after the accusations have been proven true in a court of law. Qld is the only state in Aust that allows an individual to express their private opinion of a particular product/service etc without being subject to Liable so long as they do it in a manner that is not desighned to generate/insight a consumer backlash.

In NSW, you can speak privately to up to 3 people ion a group without being subject to liable. But once you have "published" or "broadcast" such claims you can be sued as such. Unfortunately the electronic media falls into both the "publishing" and "broadcasting" catagories. Making your own leaflets would allso be considered publishing, as speaking to a group of people would be considered broadcasting and thus deformation.

The only real saving grace here is that most companies realise it is not in their best interest to sue a disgruntled customer for liable as the information is allready out their & is now a PR issue. However this is not allways the case.

Johnny
16-09-2007, 01:44 PM
Its for this exact reason why I was edgy the moment the thread in question was posted on the forum. I can imagine, and is why I thought I'd share this, to stop a repeat of.

I guess in future, if with we have a beef with a company/business/product, by all means share it, but leave name out, pm name on request.
Totally sucks I know, not being able to vent a rant for being ripped off, but, as you can see, where you do so can be held liable, sucks even more.
Wether they get off this isnt the question, they must pay to defend either way, and it wont be cheap.

oz r1
16-09-2007, 02:24 PM
i posted up a thread about this (big brother is watching)and funny enough had a conversation with a bike place about insurance companies.the salesman was saying that there was a damaged bike at there shop which the insurance company had come out to do a quote on damage done in an accident.the insurance bloke told him that they send guy's out to track day's and such to take photo's and take rego numbers.
he also mentioned checking out web forums for info ,so you must be careful not to bag companies or post up any damning info about yourself's or any other forum members. these day's there is no such thing as privacy,every one is watching everyone.

Captain
16-09-2007, 04:24 PM
You know, it's a two-way street. Whilst we're all moaning this loss of 'free speech', put yourself in the company's shoes. We've all experienced difficult customers, when no matter what you do they're never happy or are convinced that they've been ripped off. Then there's the disgruntled employee. All these people are free to go online and badmouth the company, and depending on their malice or internet savvy thay can do a lot of damage. It can ve very unjust - defamation laws are there for this very purpose.

Like I said normally you'd sue the individual, and perhaps ask for a retraction in the newspaper, but in the case of the net if the comments remain online for all to see then there must be some recourse to have them removed. And the only people who can do this are the administrators.

But like defamation cases, if the product really is that bad, or the comments made are true then there should be no problem. Doesn't mean you won't go broke paying the lawyers though .....:BangHead:

dungbeetle
16-09-2007, 07:56 PM
if the website wins their case tho then surely it will leave it open for us to write what we want on a website. and if ya read the article they seem pretty confident that they will win, the website that is.

Kat00
16-09-2007, 08:06 PM
if the website wins their case tho then surely it will leave it open for us to write what we want on a website. and if ya read the article they seem pretty confident that they will win, the website that is.

You just can`t get it, can ya Al.

Turtle
16-09-2007, 08:38 PM
Yeah we may have almost gone a bit far with "some" threads, but you cant get in the shit for arguing the truth, can you ??

dungbeetle
16-09-2007, 08:43 PM
You just can`t get it, can ya Al.


ya best explain it to me mate cause no i dont.....it says in the article that the website will probably win the case. so if they win then it leaves the door open for websites to say what they want about products or services. tell me what im wrong about!!!

MadHatter
16-09-2007, 09:18 PM
No it doesn't al. If the website successfully defends itself, it only means that they successfully defended themselves. The law is still there.. they can be sued again tomorrow. There is a thing called precedent though, so if whirlpool wins, any future cases are likely to be decided on the basis of that precedent.

I believe you have a right to tell anyone about your truthful experience with any company. If a bike shop ripped you off, you can still tell us. (No jihads on insurance companies though, please ;)
However, if something looks defamatory, we will have to remove it. Just the way it is..

dungbeetle
16-09-2007, 09:28 PM
yup i agree with ya there dave. but like ya said a precedent will be set. so ya got a lot better chance of winning....
either way it would have to be defended which im not real interested in doin, but it would be nice to know where we stand on it rather than guessing as we have been doing.

jasonbw
16-09-2007, 10:54 PM
Where ya stand... after this I'd suggest right next to that all powerful delete button. !! :) Seriously, law doesnt care, it takes homes, wages, everything, just for a website forum? Think I'd be pissed at RATs for junking a thread of mine if they thought it came close? nope.. RATs owners, this is your house and I'll follow your rules.

from now anyway :)

Kat00
16-09-2007, 11:49 PM
Rats has always been fairly liberal in what gets posted here and will continue to be.
Its the way over the top posts that are the ones of concern and there has been very, very few of them posted here..

I for one really carn`t see much changing here in the future and I think that if anything did have to get deleted, the very vast majority of the members here are fair minded enough to see the obvious.

Bigdog
19-09-2007, 02:17 PM
Well it looks like they have dropped their case against Whirlpool.
http://www.smh.com.au/news/web/lawsuit-over-forum-comments-withdrawn/2007/09/19/1189881557140.html

dungbeetle
19-09-2007, 02:31 PM
perhaps they thought they werent gonna win.....nah that wouldnt be it. :p

Johnny
19-09-2007, 02:42 PM
Common sence wins again, hooray.
Either that, or they realized it hit every forum and that they caused more damage to themselves than anyone else could :p

Alex.
19-09-2007, 03:29 PM
Having been involved in legal saga's in the past and present, let me tell you that it's not the most pleasant experience having to watch $1000's being chewed up through legal's.

We're all entitled to express our opinions about products or services that we've come in contact with however we've got to be careful not to defame anyone or anything. The last thing anyone wants to do is harm the RATS operators or themselves personally.

RATS is too good to lose!