3 of the biggest online scandals this year

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The year has barely started, but there are several court actions and a controversial comeback in the works.

1. Showpo sues Black Swallow

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Online fast fashion operator Showpo has filed a lawsuit in the Federal Court against a former employee and competitor Black Swallow. According to court documents, the etailer is suing its former graphic designer for exporting its customer database of 306,000 users prior to leaving the company last year. It is alleged the database was then transfered to her new employer Black Swallow, which used it to promote itself as an affiliate of Showpo. Black Swallow has strongly denied the allegations, with the trio set to appear in court next month.

2. Surfstitch battles with co-founder

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The ongoing battle between surfwear etailer Surfstitch and its co-founder Justin Cameron is set to continue into 2017. Last year, the etailer accused Cameron of attempting to inflate revenue and profit during his tenure in the first half of fiscal 2016. The allegations were part of a defence to a $20 million legal dispute over a content licensing deal. Now the pair are reportedly preparing for a new court battle concerning the collapse of an IT services agreement. Cameron claims Surfstitch failed to pay invoices provided by Streamline Retail, a company part-owned by Cameron, for six months. The etailer has rejected the claims.

3. Her Fashion Box vows comeback

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NSW Fair Trading took an extraordinary step in issuing a consumer warning on 'Her Fashion Box' last year. The subscription-based business, founded by Kath Purkis, deducts quarterly deposits from customers each quarter in return for seasonal fashion and beauty products. NSW Fair Trading warned customers about to service following unprecedented complaints from customers who never received a box, struggled to obtain a refund and continued to have payments deducted from their accounts despite cancelling their subscription. In its first post to customers this year, the operator vowed a comeback.

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