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.