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Seoul YMCA Citizens’ Mediation Center
[Review] Seoul District Court South Branch Panel rejects a request for a preliminary injunction ordering the deletion and prohibition of the display of articles criticizing pyramid sales schemes in the name of ‘freedom of expression’ and the ‘public interest to protect consumers’
1. The court has rejected a request for a preliminary injunction order filed by a company against an Internet anti-site which reports cases of damage caused by pyramid sales. The Seoul District Court South Branch Civil Panel No. 51 turned down a case filed by Plus IMG requesting the deletion and prohibition of articles displayed on ANTIPYRAMID (www.antipyramid.org) for reasons of alleged defamation and business obstruction.
2. The article cited in the lawsuit was drafted by a netizen (network citizen) in an appeal to the public regarding damages inflicted by Plus IMG. It demanded correction of the company’s pyramid sales scheme, expressing concern that it may inflict further damage on other victims. It also indicated that △ the company had performed pyramid sales although it was actually registered as a company engaged in canvassing sales, and that △ substantial financial and psychological damages were inflicted on university students, one of the main targets of the pyramid sales scheme. The AntiPyramid Campaign Headquarters, a cyber organization with over 10,000 members, provides a counseling service, helps remedy damages, reports illegitimate vendors, and presents alternatives for improving systems while steadily pin-pointing the problems caused by pyramid sales in Korea for the past several years through their on- and off-line activities.
3. However, Plus IMG filed a petition against the author of the article and the AntiPyramid Site to seek a preliminary injunction to prohibit such articles, alleging that the article has impeded its business and damaged its reputation. The company also filed a lawsuit demanding compensation of one million won in liquidated damages per person. Seoul YMCA agreed to provide legal support to the AntiPyramid group as part of its consumer support service, after the cyber organization solicited its help in view of its lack of capabilities to fight back against the court action by Plus IMG. (Represented by: Lee Han-mu, attorney-at-law, YMCA Citizens’ Interest Defense Group.)
4. The court ruled by saying, “It has been ascertained that Plus IMG virtually runs a pyramid sales business” and “It is further recognized that the article has played a desirable role regarding the freedom of speech and the consumer protection movement, as it serves the public interest by drawing attention to problems and exchanging information regarding pyramid sales vendors, although it does exaggerate the problems slightly in its use of some extreme expressions”. The current court decision is significant in that it recognizes that Internet anti-sites are entitled to freedom of speech and acknowledges the legitimacy of an article that serves the public interest by representing the facts and preventing others from becoming victims, though the site and article may hurt the interest of certain vendors.
5. The operation of the anti-sites should not be stifled as they provide a legitimate forum where the general public may express their opinions while monitoring business activities. Under the prevailing circumstances, in which the majority of pyramid sales vendors are small in scale, an author’s anonymity is not assured on their own bulletin boards. Seoul YMCA welcomes the current court decision and hopes that the anti-sites will develop a more mature and healthy role, inducing wide participation by the general public in everyday issues and concerns. We also call upon Plus IMG to immediately cease its illegal recruiting of salespersons and correct its illegal pyramid sales scheme, whose depredations have been repeatedly reported by university students and other young people who are newly starting their social life.
▶ Contact: Kim Hui-kyeong, Secretary (02-725-1400) | 
