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eBay Not Liable for Negative Feedback Posted by its Users
On February 5, 2003, in an unpublished decision (Roger M. Grace v. eBay Inc.), the Court of Appeal of the State of California (Second Appellate District) upheld the dismissal of a shopper's claim for libel against eBay in respect of negative feedback posted by a merchant on eBay's auction site.
Roger Grace, an attorney and publisher of an L.A. legal newspaper, bought vintage entertainment magazines from a Hollywood memorabilia dealer, Tim Neeley, through eBay's online auction site. Following the purchase, Grace received "negative feedback" from Neeley. Specifically, Neeley posted comments regarding his transaction with Grace to the site's feedback area. The comments included statements that Grace "should be banned from eBay" and was "dishonest all the way". Grace asked eBay to remove the allegedly defamatory statements from its website, but eBay refused to do so, prompting Grace to sue eBay for, among other things, damages for libel in the amount of $2.5 million.
Relying on the Telecommunications Act 1996 (47 U.S.C. § 230), which says that "no provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider," the Court of Appeal concluded that Grace had no cause of action against eBay. Grace's appeal was therefore dismissed and, as a result, the responsibility of interactive website operators for the actions of their users has been further limited by the courts.
For a copy of the decision, visit:
http://www.courtinfo.ca.gov/opinions/nonpub/B168765.PDF
For further information, visit:
http://news.com.com/2100-1028_3-5156094.html