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EBay wins dismissal of US lawsuit over sale of harmful products
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EBay wins dismissal of US lawsuit over sale of harmful products
Oct 2, 2024 11:47 PM

NEW YORK, Sept 30 (Reuters) - A federal judge dismissed

a U.S. Department of Justice lawsuit accusing eBay ( EBAY ) of

violating environmental laws by allowing the sale of hundreds of

thousands of harmful products on its platform, including

pesticides and devices to evade motor vehicle pollution

controls.

U.S. District Judge Orelia Merchant in Brooklyn ruled on

Monday that Section 230 of the federal Communications Decency

Act, which protects online platforms from liability over user

content, shielded eBay ( EBAY ) from liability in the civil lawsuit.

The judge said eBay's ( EBAY ) administrative and technical support

to sellers "does not materially contribute to the products'

alleged unlawfulness" and does not make the San Jose, California

company a "publisher or speaker" on sellers' behalf.

Merchant also said eBay ( EBAY ) was not a "seller" of some of the

challenged products, because it did not physically possess them

or hold title. She rejected the government's argument that eBay ( EBAY )

was a seller because it exchanged the products for money.

The Justice Department did not immediately respond to

requests for comment. Ebay ( EBAY ) and its lawyers did not immediately

respond to similar requests.

In its Sept. 2023 complaint, the Justice Department accused

eBay ( EBAY ) of illegally allowing the sale of more than 343,000

aftermarket "defeat" devices that help vehicles generate more

power and get better fuel economy by evading emissions controls.

The company also was accused of allowing sales of 23,000

unregistered, misbranded or restricted-use pesticides.

EBay ( EBAY ) also allegedly distributed more than 5,600 paint and

coating removal products that contained methylene chloride, a

chemical linked to brain and liver cancer and non-Hodgkin

lymphoma.

The government said eBay's ( EBAY ) conduct violated the Clean Air

Act; the Federal Insecticide, Fungicide, and Rodenticide Act;

and the Toxic Substances Control Act.

The case is U.S. v eBay Inc ( EBAY ), U.S. District Court, Eastern

District of New York, No. 23-07173.

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