Case Briefing

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STONER vs. EBAY INC., a Delaware Corporation, et al.

October 10, 2000

Key Fact

eBay is an online auction company that advertises and offers sales through the charged interactive computer service provider, and not an information content provider allowing sellers to initiate auction of goods and services and role does not extend beyond the scope of the federal immunity. The sellers describe the transactions over the site and buyers accept them through a bid in accordance with the rules of the service. Stoner sued eBay, contending that it allows illegal items on its site and does not monitor the auctions to ascertain legality.

Issue

Does e-Bay enjoy immunity under the Communications Decency Act ("CDA"), 47 U.S.C. §230, for any violation arising on its platform.

Holding

            The court held that e-Bay is immune from any liability arising from plaintiff's claims, and therefore granted eBay motion, in that if an obligation is to be imposed on the defendant, the Congress must re-evaluate the immunity.

Summary of Court's Reasoning

            The court withheld that eBay is an interactive computer service provider and not an information content provider. The descriptions of the goods and services auctioned over the eBay service are sellers’ creation and not eBay and that any information added by eBay are similar to those added by other webpages for ease of access to the content provided. eBay does not possess or inspect such goods at any time, does not describe the items or determine the pricing and is not responsible for the creation or development of information relating to any of the products. eBay has adopted procedures to curtail the use of its service to sell inappropriate items. If liability were imposed, eBay would likely cease, or at least its operation significantly restricted, an action that the Congress will be tasked with in re-evaluating the immunity conferred in section 230.

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