Greenwood optimistically decided that if the injunction were granted, the public interest could still be served by the government drug regulator, the Therapeutic Goods Administration, investigating the claims made in the draft report.
However, the simple act of the company serving a writ prompted seven of the group's ten founders to bail out. With the remaining three members having spent over A$15,000 out of their own pockets unsuccessfully trying to fend off the injunction, the prospect of burning tens of thousands more on an appeal or a full trial was too much to contemplate. Bowed and bloodied, the defendants have reluctantly proposed making the injunction permanent.
What Justice Greenwood appears not to have understood was that as long as the matter is before the courts, the Therapeutic Goods Administration are obliged to sit on the sidelines. A regulation - known as Regulation 42ZCAJ - specifically prevents the agency from investigating a complaint, "if a proceeding has begun in a court about the subject matter of the complaint and the proceeding has not been finally disposed of." The Complementary Healthcare Council of Australia, which administers the self-regulatory code for herbal product marketers, won't investigate either, as long as the legal case is active.
Stopping the SLAPP-Happy
The Tebonin case illustrates how the legal system can work to the advantage of deep-pocketed corporations and why legal reforms are necessary to protect public interest advocacy groups. A group of public health professionals, who were only doing what the government regulator failed to do in the first place, have been deterred from raising legitimate questions over drug promotions. Greenwood's injunction has had the effect of forcing public-spirited citizens to surrender their legal rights, simply to clear the way for a government regulator to investigate whether the companies marketing claims stack up or not.