McDonald’s seeking RM6m in damages from boycott advocates

A group advocating for boycotts against major international brands in response to the Israeli invasion of Gaza is facing an RM6 million claim for damages suffered by fast food chain McDonald’s.

Gerbang Alaf Restaurants Sdn Bhd (GAR), the franchise owner of McDonald’s in Malaysia, was claiming the sum for revenue loss (RM3 million), compensation for employees who were laid off (RM1.5 million), and expiry of materials (RM1.5 million).

The plaintiff said the defendant – Boycott Divestment Sanctions Malaysia (BDS Malaysia) – incited the public to hate the McDonald’s brand due to the conflict between Israel and Palestine.

“It is common knowledge that the people of Malaysia – the majority of whom are Muslim – had boycotted the defendant’s business because it was (allegedly) linked with the conflict.

“There were also incidents where the plaintiff’s employees were threatened and shamed in social media,” read GAR’s statement of claim.

In addition to exemplary damages, the plaintiff is also seeking an injunction against repeating defamatory statements by BDS Malaysia and a court order for the group to withdraw all defamatory statements.

GAR said BDS Malaysia, by way of innuendo, inferred that the company was involved in the genocide of 2.3 million Palestinians, collaborated with Israel or its military, and profited from the mass killing of Palestinians.

“The plaintiff stressed that it, nor McDonald’s Corporation, had not contributed to, supported, or been involved in any political or religious conflict around the world, including the Israeli-Palestinian conflict.

“Because of the spread of defamatory statements by the defendant on their websites, Facebook accounts, and Instagram accounts, the plaintiff’s reputation has been affected and subject to public hatred,” read the claim filed on Dec 19.

GAR pleaded that they had issued a letter of demand to BDS Malaysia to remove the defamatory statements on Nov 10 and in a reply on Dec 12, BDS Malaysia insisted that McDonald’s Corporation had allowed its franchisees to aid the Israeli military and that their statements were based on facts.

In its statement of claim, GAR said the company was 100 percent owned by Muslims and that 55 percent of its clientele were also Muslims.

In a statement, BDS Malaysia denied defaming GAR.

“We have, therefore, decided to let the court decide on the matter,” said the group, adding that further details will be revealed soon.