Whirlpool Controversy
On 11 September 2007, Whirlpool announced that its founder, Simon Wright, was being sued by 2Clix for alleged 'Injurious Falsehood', a tort not dissimilar to defamation under Australian law, resulting in "a severe downturn in monthly sales". Specifically, 2Clix claimed that comments on the Whirlpool Forums regarding alleged major issues with the product were 'False and Malicious'. 2Clix "quantifies its loss in income between January 2007 to July 2007 at approximately A$150,000 per month" and was suing for A$150,000 plus interest, plus legal costs. The complaint asked the court for A$150,000 total in the summary of relief, while claiming damages of A$150,000 per month.
While legal experts doubted the ability of 2Clix to win the case from the outset, it could have had major ramifications for website operators and their users. A win for 2Clix could have set a precedent and seriously limited the ability of web users to criticise companies' products and services.
Whirlpool users subsequently began donating money to assist the site in its coming legal battle. Some users claim to have had personally donated more than A$1000 through Paypal and the Managing Director of PIPE Networks personally pledged A$10,000 to support Whirlpool's cause.
On 19 September 2007, 2Clix solicitors, Turnbull & Co, stated that it had received instructions to discontinue the case. On 30 October 2007 the Queensland Ecourts website showed that documents to discontinue the case were received.
A former 2Clix senior employee of eight years said in July 2008 that 2Clix Australia's decision to liquidate was precipitated by the negative press resulting from its failed lawsuit against Whirlpool.
Read more about this topic: 2Clix Software
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