Channel Seven reported on TV and online that Malgorzata Barbara Poniatowska had defrauded Centrelink of more than $20,000 in benefits while working for a building company. The report further stated she had found a loophole in social security law.

As a result, Ms. Poniatowska filed a defamation suit against Channel Seven alleging that the report portrayed her as a welfare cheat. The case was dismissed. She filed an appeal and the Full Court of the Supreme Court reversed the judge’s ruling, finding that the latter committed errors in not finding that the defenses Channel Seven raised did not exist. 

According to the Full Court, the Channel Seven story conjured up the stereotypical image of a welfare fraudster collecting benefits under false pretenses by using false identities or pretending that they are not working - by referring to fraudsters and welfare cheats ripping off the system.

Channel Seven was therefore liable to pay for damages.