RageOn Inc., an online retailer using Shopify's platform, sought an interim injunction to restore its access to Shopify's services after Shopify terminated their agreement.
Shopify terminated the agreement due to RageOn's repeated violations of its Acceptable Use Policy (AUP), which prohibits hateful content and content associated with terrorist organizations.
RageOn argued the termination was premature, the breaches were not material, and Shopify acted in bad faith.
The court applied the modified RJR-MacDonald test for mandatory interlocutory injunctions, requiring RageOn to demonstrate a strong prima facie case.
The court found RageOn failed to show a strong likelihood of success on the merits, failed to demonstrate irreparable harm, and that the balance of convenience did not favour granting the injunction.
Consequently, RageOn's motion was dismissed.