In Part 2 of 2021 cyberlaw cases in the recovery period, Foong Cheng Leong highlights a couple of interesting cases around the increasingly common issue of disputes around electroniccontracts & the use of influencers for livestreaming
Once a person clicks on a button agreeing to terms, such terms are bindingIn Part two, I highlight interesting cases around the the increasingly common issue of disputes around electronic contracts and the use of influencers for live streaming. It is settled that electronic contracts are enforceable in Malaysia. Once a person clicks on a button agreeing to the terms, such terms are binding on him regardless of whether or not he read it or not.
Our Court had adjudicated a matter concerning live streaming in Malaysia, which featured the hallmarks of a live streaming business. [2021] 1 LNS 2289, the defendant engaged the plaintiff as one of its official guilds to manage, recruit and provide live streamers to perform live streaming services on the defendant’s live streaming platform known as “Elelive”.
As a result, the plaintiff sued the defendant for the outstanding fee, a declaration that the sanctions made for the violation of the said rules and regulations are unlawful, and losses amounting to RM4,333,200 for the damages caused due to the departure of live streamers from the plaintiff due to the sanctions, estimated cost of recruiting or replacing the departed live streamers, and additional losses as there were live streamers that had stopped online broadcasting due to the sanctions.
The Court held that the defendant is liable to pay for the outstanding sum as the plaintiff had performed the services that it is required to do. The Court also found that sanctions imposed were improper based on the reasons below. The Court also found that the punishment meted out via the sanctions were not within the parameters of the rules and regulations. In fact, two of the sanctions were not even stated in the rules and regulations. The Court held that the defendant is not entitled to impose punishment that is more severe than what was agreed between the parties in the rules and regulations. The defendant is not entitled to impose punishment at its uninhibited whim and fancy.
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