Possible Internet Law Precedent

There could be a disturbing law precedent that could be set for Australian website owners, especially those from an online community. 2Clix is suing a popular Australian website Whirlpool which has around 180,000 users, over comments published on their message board. The owner of the website, Simon Wright is being sued for "injurious falsehood", and 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". 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".

Freedon of Speech Rules! We consumers have the right to complain. All the best to Simon and Whirlpool and don't let them set this precedent.

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