POOLE-based company Redsave is pursuing an internet forum for up to £50,000 libel damages.

The firm sells gadgets online but was the subject of dozens of negative posts in online forums.

People say they unwittingly agreed to sign up to a £19.95 a month shopping club when they made their purchase.

Redsave, based in Sterte Avenue, has got sites to remove threads and has filed a libel claim against the consumer website Unbeatable.

Redsave has said its terms and conditions were clear to customers, though its site has been modified since the first complaints.

Callum McKeefrey, the MD of Unbeatable said: "We are vehemently defending ourselves.

"We will be standing up for the consumer and freedom of speech. We are not going to back down. It's a test case - it would open the floodgates to claims.

"We are very, very confident of our case."

Redsave also made claims for costs against at least 16 people who made the posts so it could purse libel claims, but these appear to have been dropped.

Solicitors NewLaw, who acted for four posters, applied for the cases to be struck out on the grounds that there was no legal basis on which to continue the claims.

Solicitor Gemma Bowen said "Redsave discontinued all four of the cases and we are now seeking payment of our clients' costs."

NewLaw is also speaking to a "substantial number of people" about grounds for getting the monthly payments back.

Miss Bowen said: "Many people feel aggrieved that monies were taken from their account without realising it was happening."

Other former customers, including teacher Amy Bonsall, who had £260 taken in monthly payments over 13 months, are going to the small claims court.

Several former Redsave customers have told the Echo their banks refunded their money, though none of the banks would comment on this.

The consumer website MoneySavingExpert.com, run by Martin Lewis, said it has "commissioned a leading financial investigative journalist to research all complaints, look into Redsave and see if the complaints are justified".

Redsave was incorporated in June 2006 and its first set of accounts is now two months overdue.

Max Walker, Redsave's project manager, declined to answer questions on the grounds of "confidentiality", only saying he would "100 per cent" pursue the case against Unbeatable.