WBG Network v Meridian Life: Defamation & Malicious Falsehood in MLM Algae Product Sales

WBG Network (Singapore) Pte Ltd, an MLM company, sued Meridian Life International Pte Ltd and its employees, Lim Jit Shyan and Tan Siong Woei, in the High Court of Singapore, alleging slander and malicious falsehood. The case centered on statements made by Shyan and Ivan about WBG's algae health products after they joined Meridian Life. Andrew Ang J found the defendants liable for defamation and malicious falsehood for certain statements made during sales presentations, relating to the composition and marketing of WBG's products. The court gave judgment for the plaintiff and ordered damages to be assessed.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for the plaintiff.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

WBG Network sued Meridian Life for defamation and malicious falsehood over statements about their algae products. The court found Meridian Life liable for certain statements.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
WBG Network (Singapore) Pte LtdPlaintiffCorporationJudgment for the plaintiffWon
Meridian Life International Pte LtdDefendantCorporationVicariously liable for defamation and malicious falsehoodLost
Lim Jit ShyanDefendantIndividualLiable in defamation and malicious falsehoodLost
Tan Siong WeiDefendantIndividualLiable in defamation and malicious falsehoodLost

3. Judges

Judge NameTitleDelivered Judgment
Andrew AngJudgeYes

4. Counsels

Counsel NameOrganization
Gabriel PeterGabriel Law Corporation
Peter Calista MarellaGabriel Law Corporation
Michael LohClifford Law Corporation
Montague ChoyClifford Law Corporation

4. Facts

  1. WBG and Meridian Life are competing multi-level marketing companies selling algae health products.
  2. Shyan and Ivan were former distributors for WBG before joining Meridian Life.
  3. WBG marketed its products using the trade name 'Cryptomonodales' (CM), which is actually Chlorella Sorokiniana (CS).
  4. WBG lost its license to distribute products containing CM, which was then granted to Meridian Life.
  5. Shyan and Ivan made statements during sales presentations about WBG's products after joining Meridian Life.
  6. WBG alleged that these statements were defamatory and constituted malicious falsehood.
  7. WBG's new products contained CS mixed with other ingredients.

5. Formal Citations

  1. WBG Network (Singapore) Pte Ltd v Meridian Life International Pte Ltd and Others, Suit 466/2006, [2008] SGHC 114

6. Timeline

DateEvent
WBG Network (Singapore) Pte Ltd established.
Shyan and Ivan left WBG Network (Singapore) Pte Ltd.
WBG Network (Singapore) Pte Ltd updated its Hunza range.
Meridian Life International Pte Ltd established.
Indinine3000 introduced as a product upgrade for Indinine.
WBG Network (Singapore) Pte Ltd lost the license to distribute Prof Wang’s products and to use the trade name CM.
Shyan and Ivan employed by Meridian Life International Pte Ltd.
First sales presentation by Shyan and Ivan to Bruce Cai Qing and Doreen Soon Bee Yun.
Second sales presentation by Shyan and Ivan to Bruce Cai Qing, Sharon Ong, and Tan Chye Soon.
WBG Network (Singapore) Pte Ltd gross revenue decreased.
WBG Network (Singapore) Pte Ltd filed Suit 466/2006.
Judgment reserved.

7. Legal Issues

  1. Defamation
    • Outcome: The court found the defendants liable for defamation for certain statements made during sales presentations.
    • Category: Substantive
    • Sub-Issues:
      • Publication of defamatory statements
      • Defences of justification and fair comment
  2. Malicious Falsehood
    • Outcome: The court found the defendants liable for malicious falsehood for certain statements made during sales presentations.
    • Category: Substantive
    • Sub-Issues:
      • Proof of malice
      • Likelihood of pecuniary damage
  3. Effect of Lack of Traversal
    • Outcome: The court held that the allegations as to publication are deemed admitted due to the lack of traversal in the defence.
    • Category: Procedural

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Defamation
  • Malicious Falsehood

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Health
  • Multi-Level Marketing

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Sim v StretchN/AYes[1936] 52 TLR 669N/ACited for the test of whether a statement contains a defamatory meaning or innuendo.
Workers’ Party v Tay Boon TooN/AYes[1972-1974] SLR 621SingaporeCited for the test of whether a statement contains a defamatory meaning or innuendo.
Overseas-Chinese Banking Corp Ltd v Wright NormanN/AYes[1994] 3 SLR 760SingaporeCited for the element of fair comment that the comment must be based on fact.
Chen Cheng v Central Christian ChurchN/AYes[1999] 1 SLR 94SingaporeCited for the element of fair comment that the comment must be based on fact.
DHKW Marketing v Nature’s Farm Pte LtdN/AYes[1999] 2 SLR 400SingaporeCited for the interpretation of the word “calculated” in section 5 of the Defamation Act.
IBM v Web-sphere LtdN/AYes[2004] FSR 39N/ACited for the interpretation of the word “calculated” in section 5 of the Defamation Act.
Maidstone Pte Ltd v Takenaka CorpN/AYes[1992] 1 SLR 772SingaporeCited for the definition of malice in the context of malicious falsehood.
Horrocks v LoweN/AYes[1975] AC 135N/ACited for the definition of malice in the context of malicious falsehood.
Spring v Guardian Assurance plcN/AYes[1993] 2 All ER 273N/ACited for the definition of malice in the context of malicious falsehood.
Kaye v RobertsonN/AYes[1991] FSR 62N/ACited for the definition of malice in the context of malicious falsehood.

13. Applicable Rules

Rule Name
Rules of Court (Cap 322, R5, 2006 Rev Ed) Order 18 r 13

14. Applicable Statutes

Statute NameJurisdiction
Defamation Act (Cap 75, 1985 Rev Ed)Singapore
Defamation Act (Cap 75, 1985 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Multi-level marketing
  • Algae health products
  • Cryptomonodales
  • Chlorella Sorokiniana
  • Defamatory statements
  • Malicious falsehood
  • Sales presentation
  • Lack of traversal
  • Fair comment
  • Justification

15.2 Keywords

  • defamation
  • malicious falsehood
  • multi-level marketing
  • algae
  • cryptomonodales
  • chlorella sorokiniana
  • slander
  • Singapore
  • MLM

17. Areas of Law

Area NameRelevance Score
Defamation90
Malicious Falsehood85
Torts70
Misrepresentation60
Civil Procedure40
Contract Law30

16. Subjects

  • Defamation
  • Tort Law
  • Civil Litigation
  • Commercial Law