Whirlpool's off the hook, but the big issue remains unsolved -- are you next?

Angus Kidman
20 September 2007, 1:53 AM


ANALYSIS |2Clix's withdrawal from a legal case against the founder broadband discussion forum Whirlpool might be welcome news, but leaves the legal status of Internet publishers just as murky as ever.


Whirlpool founder Simon Wright: relieved the 2Clix action has been withdrawn, but still waiting for official confirmation to be filed at the Supreme Court of Queensland.Whirlpool founder Simon Wright: relieved the 2Clix action has been withdrawn, but still waiting for official confirmation to be filed at the Supreme Court of Queensland.
2Clix's withdrawal from a legal case against the founder broadband discussion forum Whirlpool might be welcome news, but leaves the legal status of Internet publishers just as murky as ever.

Ever since news of 2Clix's legal action against Whirlpool founder Simon Wright first broke, the general opinion has been that it was, at best, a massive miscalculation. 2Clix's suit, which sought to have two threads discussing the effectiveness of its products removed from the site, instead resulted in global publicity of those threads. Indeed, as I write this, those threads dominate the top five search results for '2Clix' on Google -- hardly a good outcome if you're seeking to minimise bad publicity.

A posting on Whirlpool confirmed that 2Clix, perhaps stunned by the massive online coverage its case generated, had issued instructions to its solicitors to discontinue the case. Whirlpool intends to offer refunds to the many people who have offered donations to help cover its legal costs, although even with an abandoned case these are likely to be quite considerable.

For Whirlpool founder Simon Wright, personally named in the original suit, the cancelled legal action will doubtless come as a considerable relief. However, for anyone operating an Internet discussion forum in Australia, the lack of action in this case leaves a legal situation that oscillates nastily between 'uncertain' and 'incredibly risky'.

To date, there hasn't been a case in Australia that has clarified whether site owners should be held responsible for comments posted by individuals on their sites. Most sensible operators (including the moderators at Whirlpool) try to cover themselves by including disclaimers against responsibility for individual comments, and by eliminating obviously offensive or illegal comments.

However, the status of such disclaimers has yet to be tested, and there are no over-arching guidelines about just what ought to be removed. Sure, it's pretty clear that a racist remark or a death threat probably ought to go, but what about sustained criticism of a product that the site operator knows nothing about? It could be a legitimate criticism, but it could be a personal vendetta.

One of the few successful defamation actions relating to the Internet in Australia falls into the latter category. In 2003, Dr Trevor Cullen won a case against William White, with the court finding that the latter had set up a series of web sites and made forum posts in an attempt to ruin Cullen's reputation as an academic. Even that was something of a minimal victory, as the finding (and its associated $95,000 in damages) couldn't effectively be enforced against White, a US citizen, but it does demonstrate that not all postings online should be taken at face value.

Eventually, these laws are bound to be tested more thoroughly. 2Clix used an 'injurious falsehood' suit because it was blocked from invoking defamation law as a company, but that doesn't mean that an individual named in a forum couldn't pursue such a line. A publisher might then try and use an 'innocent dissemination' argument, but the legal consensus seems to be that such a defence would be less effective if a complaint about the content had been reached. Much online discussion on this topic revolves around the notion of 'free speech', but that concept is largely irrelevant to the Australian situation.

A popular point of view on the Internet is that such problems are best resolved via community consensus -- that is, when something obviously stupid happens, the community will make its feelings known and resolve the issue democratically. In one notable example earlier this year, news aggregator Digg became swamped with postings after it started removing items relating to a leaked AACS encryption key, and the site's founders eventually backed down.

This was widely viewed as a victory for sensible behaviour online, but it isn't hard to also see it as an example of mob rule. Consider it this way: imagine that White had made one of his posts on Digg (or indeed on Whirlpool). Would the community have supported Cullen's right to take legal action regarding those remarks, or backed White despite the offensive content of his comments? It may have exercised sensible judgement, but it may have been more amused by the notion of reproducing the offending remarks on a picture of a kitten.

By standing firm in the 2Clix case, Whirlpool avoided Digg's reputational fracas, and demonstrated that it has won widespread community support through its even-handed approach, which includes encouraging companies that are complained about to respond. Not every site operator is likely to be as fortunate in the future.


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Anonymous2007:

You cant stop public opinion. People are going to let other people know what they think of their purchases. I would like to make the point also if these peoples customer service was more supportive maybe this would never have happened but saying that you cant make everyone happy.

If you search the net there is a lot of bad stuff about companies and people have a right to know what other people have gone through while they used there services or products. I did a search for 2clix because I didn’t know what it was and the top pages where from whirlpool which had the so called bad press about 2clix. It all come down to support and understanding…. I’m having trouble with MSI at the moment maybe you’ll see my post soon on whirlpool??



29 February 2008, 8:32 PM (5 years ago)report abuse Send to a friend reply

Libby:

"Whirlpool avoided Digg's reputational fracas, and demonstrated that it has won widespread community support through its even-handed approach, which includes encouraging companies that are complained about to respond."

You guys are too nice :) Mind you, on the whole companies would prefer not to be put in the situation of _having_ to respond. It's a bit of a double-edged sword, this "power to the people" thing. (Actually, more of a fractally-edged sword .. ).

29 February 2008, 8:32 PM (5 years ago)report abuse Send to a friend reply

BigBear:

When people jump up and down about having negative comments removed from various places, the first thought that I have is if they mind having all the complimentary comments removed as well....




29 February 2008, 8:32 PM (5 years ago)report abuse Send to a friend reply

Anonymous101:

I am not a lawer and I know little about the details of this case, but
What if a large company started a campain to discredit its opposition without declaring its own name name? We do not have completely free speach for good reason. People and companies should have the right to sue in cases of unjustified slander. Good and bad comment are fine but lies are not. The real question is who is to blame, not the owner of the discusion list, in my opinion.

29 February 2008, 8:48 PM (5 years ago)report abuse Send to a friend reply

Anonymous007:

If whirlpool could be sued for providing a forum, what about suing the paper manufacturer for supplying paper to a newpaper to print comments on, and that goes for the ink used as well.

And by the way what about the ISP who provided the connection, what about the Software Manufacturer who supplied the Webservers and Formum software, after all without thier contributions, this would never have been an issue.

Get my drift just who exactly is responsible here. By all means sue the persons/company who made the false allegation if proved, but that's all.




29 February 2008, 8:48 PM (5 years ago)report abuse Send to a friend reply

Wes:

Comments help get views of different people and experiences and if there are so many negative comments about a certain product,then there must be some truth in thse comments. The company involved should simply offer the correct view on that forum if it feels that all the commenters are wrong and hopefully discuss the issues at hand.

29 February 2008, 8:32 PM (5 years ago)report abuse Send to a friend reply

Tom:

There should be a site that details all the issues relating to car dealers. One Sydney based company was caught out on this and did not like what was said about them on a web site.

The car owner web site hunterholdensucks.com invited comments about other peoples dealings with the car dealership, the dealer was not happy and took him to court for Injurious Falsehood. 

The guy could have done with a great forum like Whirlpool has behind him when this happened. Kudo's to everyone helping Simon out, people should be able to speak there minds in a factual and representative way, what is going on in this country of ours?


29 February 2008, 8:32 PM (5 years ago)report abuse Send to a friend reply

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