Misleading Advertising Law

One of the more difficult problems any private consumer warning website faces is the problem of defamation. When a single individual takes on an organization and alleges that the organization is in effect a criminal one, you can imagine that the lawsuits will fly.

David John Thorton faced this problem with his website www.crimebustersnow.com in which he alleged that Treasure Traders was an illegal pyramid scheme. Treasure Traders sued him and asked for an injunction requiring him to take down his website, among other things.

The matter was heard by the Honourable Mr. Justice Quigley on June 29, 2006. The decision was recently released, with the style of cause being Treasure Traders International Corporation and Business In Motion International Corporation versus David John Thorton. It should be available soon online. But the entire decision can be read at www.crimebustersnow.com.

The Honourable Mr. Justice Quigley denied TTI's motion for injunctive relief holding that TTI had not made out all three elements necessary for injunctive relief. In particular, he found that TTI had not come to the Court with "clean hands". The allegations Mr. Thorton had made about the company, viz. that it was an illegal pyramid was sufficiently supported by uncontradicted evidence that the Judge decided that the balance of convenience favoured letting Mr. Thorton continue his investigatory work and publish it online.

Mr. Thorton also alleges that "Diamond Traders" is an illegal pyramid scheme. Diamond Trader's website which explains it pyramid scheme uses the very same metaphors, with different labels, as did the recent Massachusetts illegal pyramid scheme.

It is a credit to Mr. Thorton that he was able to represent himself effectively in this lawsuit, and we look forward to seeing the results of his security for costs motion. A similar motion for security of costs was recently allowed against TTI.

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