eBay Cleared of Liability for Harmful Product Sales

A lawsuit filed by the US government accusing eBay of selling nearly 350,000 environmentally harmful products, including pesticides and devices designed to circumvent motor vehicle emission controls, has been dismissed by a federal judge. On Monday, District Judge Orelia Merchant ruled that eBay is not liable for items sold by users on its digital marketplace, citing civil protections afforded by Section 230 of the Communications Decency Act.

Section 230 stipulates that online platforms cannot be held responsible for hosted content unless they contributed to the development of what made the content illegal. The lawsuit, filed by the US Department of Justice last year, alleged that eBay had violated the Clean Air Act by knowingly selling or offering unlawful products for sale.

Judge Merchant dismissed the DOJ’s claim, stating that eBay must “own or possess an item” to be considered a seller. She also ruled that the administrative and technical support provided by eBay to sellers, such as messages, email notifications, and payment processing, does not materially contribute to the alleged unlawfulness of illegal products.

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