Black Swallow will pay Showpo $60,000 after customer data 'theft' dispute

Showpo founder Jane Lu. Photo: Facebook.

Rival online retailer Black Swallow has been ordered to pay Showpo $60,000 in instalments over the next several months.

It comes after Showpo alleged former graphic designer Melissa Aroutunian downloaded the company’s customer database of 306,000 records and gave it to her new employer at Black Swallow.

According to the Sydney Morning Herald, the case will be dismissed after the payments.

Both parties are to pay their own legal costs. Aroutunian has been permanently restrained from using the customer data and also ordered to pay her own legal expenses.

In response to the settlement Showpo told Business Insider: “We’re satisfied with the outcome and that is was settled in a civil matter.”

During the dispute, Black Swallow managing director Alexander Baro told Business Insider he denies all the accusations and that his company had fielded record levels of interest after the exposure from the court case.

“I’m loving it. Sales have spiked up, traffic has never been better,” he said. “[Lu] loves her name in lights and she’s the one who instigated it all. It’s been great for me — she did me a great favour.”

When asked if the graphic designer was paid for the customer list, Baro said: “We bought her a house, three donkeys and a reindeer.” Read more on that here.

In January, Showpo also accused Black Swallow — which sells similar products to a similar market demographic -– of marketing itself in a way that gives the impression that it is associated with Showpo. The settlement did not direct Black Swallow to change its marketing in any way.

Additional reporting by Tony Yoo.

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at