Whirlpool Sued Over 2Clix Threads

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Originally published Thursday Sep 13, 2007

Whirlpool founder Simon Wright has been accused of alleged "injurious falsehood" and is being sued by by accounting software company 2Clix Australia for for at least $150, 000 in damages.

The outcome of this court case could potentially set a precedent for the restriction of individuals' freedom of expression. This decision is significant in that it could ultimately change the nature of the the game for Australian and eventually international website operators and their users.

The Statement of Claim filed with the Supreme Court of Queensland states that there were recorded statements on the defendant's website "relating to the Plaintiff and its software" in manners that are "both false and malicious".

Two threads consisting more than 30 posts were reportedly published on the Whirlpool forum between late last year and July this year including, amongst others, the following posts taken directly from the statement:

Posting on September 1st last year by registered user #14115 "Sharakhan": "...if i can help this person from making a huge mistake then...I would advise to you to avoid this program at all costs..."

Posting on September 25th last year by registered user #137485 "gelati": "...Have them prove that it does everything they say it does. I know of two organisations that have purchased this product and thrown it out. There are too many negative comments about this product for you to ignore. I think you might be better off looking in other directions."

For further viewing of the 21 selected statements included in the legal papers, visit to gain access to the file.

Moreover, the plaintiff assert that these statements have led to a significant "downturn in monthly sales" and subsequently seek compensation for damages.

For 2Clix to achieve defeat of Wright however, they will be required to prove that:

  1. the statements were false
  2. they were made in malice, and
  3. monetary loss was caused as a result of failure to remove threads on the website.

It is generally thought that this will be a difficult task considering the negative statements were expressed by users independent of the website founder.

Whirlpool are not taking the situation lightly however, urging users of the website to "respect Simon's right to a fair trial and not prejudice his case". Rather, he prompts them to make "polite and factual comments" as opposed to making statements that "prejudice the outcome of the case". In addition to this, the website has been set up to receive donations from users via Paypal to cope with the costs of litigation given the little resources the company have at their disposal.

Wright remains determined to "defend the matter vigorously".

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