GERBANG Alaf Restaurants Sdn Bhd (GAR), the franchise owner of McDonald’s in Malaysia, is seeking RM6 million in damages for the harm incurred by the fast-food chain McDonald’s due to actions by a group promoting boycotts against major international brands in response to the Israeli invasion of Gaza.

GAR is seeking compensation for various aspects, including revenue loss (RM3 million), employee layoff compensation (RM1.5 million), and material expiration costs (RM1.5 million).

The plaintiff, GAR, alleges that the defendant, Boycott Divestment Sanctions Malaysia (BDS Malaysia), encouraged public animosity towards the McDonald’s brand concerning the conflict in Palestine.

GAR’s statement of claim asserts that the majority of Malaysians, who are predominantly Muslim, boycotted the business due to its alleged connection with the conflict.

The claim further states that there were instances of threats and social media shaming directed at the plaintiff’s employees.

In addition to exemplary damages, GAR is requesting an injunction against the repetition of defamatory statements and a court order for the withdrawal of all such statements.

GAR asserted that BDS Malaysia, through innuendo, insinuated that the company was implicated in the genocide of 2.3 million Palestinians and collaborated with Israel or its military.

“GAR stressed that neither it nor McDonald’s Corporation had 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 BDS Malaysia on its websites, Facebook and Instagram accounts, the GAR’s reputation has been affected and subject to public hatred,” read the claim filed on December 19.

GAR claimed to have sent a letter of demand to BDS Malaysia on November 10, and in response on December 12, BDS Malaysia maintained that McDonald’s Corporation had permitted its franchisees to assist the Israeli military, asserting that their statements were factual.

GAR, in its statement of claim, highlighted that the company was entirely owned by Muslims, with 55% of its clientele also being Muslims. BDS Malaysia, in a statement, refuted the accusation of defamation against GAR.

“We have, therefore, decided to let the court decide on the matter,” said the group, adding that further details will be revealed soon. – December 29, 2023