Sharon Givoni Unpacks the Legal Dangers of Social Media for Fashion Labels

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Sharon Givoni Unpacks the Legal Dangers of Social Media for Fashion Labels

Social media is fashion’s favourite runway.

It’s instant, it’s visual, and it’s global. But as the famous Seafolly v White Sands case shows, one frustrated post can transform into a high-stakes legal drama. And the fallout? Costly, reputationally damaging, and a timely reminder that what you say online matters.

What happened?

In 2010, Leah Madden, designer behind White Sands swimwear, thought she saw her “Shipwrecked” collection appear — suspiciously — in rival Seafolly’s 2010 line. Outraged, she took to Facebook.

She posted side-by-side images of her designs against Seafolly’s, with captions like “White Sands 2009 – Seafolly 2010.” Comments followed:

• “Seriously, almost an entire line-line rip-off.”
• “Ripping off is always going to happen, but sending in a dummy buyer to get photos is super sneaky!”

The posts went viral. Media outlets picked up the story. Readers chimed in with heated takes: “Disgusting! Shame on ‘em!” and “Seafolly… unfortunately they do rip off everyone.”

Madden later argued she was just expressing an opinion. But the Federal Court of Australia didn’t see it that way.

Seafolly sued, alleging:

1. Misleading or deceptive conduct under the Australian Consumer Law
2. Injurious falsehood, claiming reputational damage and loss of sales
3. Copyright infringement, for reproducing Seafolly’s photos without permission

The Court sided with Seafolly. Madden’s posts weren’t mere “opinions” but statements of fact made in a commercial context. The judge reminded us that online audiences include “the astute and the gullible, the intelligent and the not so intelligent.”

White Sands was ordered to pay Seafolly $25,000 in damages plus legal costs. Both brands walked away bruised, reputationally and financially.

As Seafolly’s CEO reflected: “In this day of internet, where things go viral, once she put that up there, I was finished anyway… the damage had been done.”

Why This Case Still Matters

The Seafolly saga teaches us:

1. Think before you post: A caption can become evidence.
2. If your words suggest plagiarism, that’s enough to be actionable.
3. Posts are “in trade and commerce”: Which means ACL rules apply.
4. Protect designs early: Design registration is a shield before disputes begin.
5. Other Social Media Compliance Risks to Keep in Mind (2025 Edition)
6. Since Seafolly v White Sands, the stakes have only grown higher. Modern labels should be mindful of:
7. Advertising law: Every post can be “advertising”
8. Privacy law: Collecting emails is covered by the Privacy Act 1988.

Seafolly v White Sands wasn’t just a bikini brawl — it was a landmark reminder that fashion and law collide daily online. The case may be more than a decade old, but its lessons are evergreen: social media is powerful, but also a legal minefield.

The smart move? Protect your creations, post with care, and back it all up with a clear Social Media Policy.

At Sharon Givoni Consulting, we help businesses of all kinds navigate the legal side of social media — from policies and compliance to copyright, privacy, trade marks and reputation management.

Please note the above article is general in nature and does not constitute legal advice.

Please email us info@iplegal.com.au if you need legal advice about your brand or another legal matter in this area generally.