
This is a different case than the one
eBay settled with the government for $59 million in January involving the sale of pill presses that the government had alleged violated the Controlled Substances Act. In that case, eBay was forced to agree to provide the government with contact information of buyers and sellers associated with transactions tied to listings that violate eBay's new Pill Press, Die, and Mold Policy going forward.
In the EPA lawsuit, the government argued that eBay is the seller of illegal goods that it alleges violate the Clean Air Act and other laws, and it seeks to hold eBay responsible.
In a filing on February 9, eBay pointed to Section 230, which has protected it in the past (
Gentry v eBay): "The Government's claims are also barred by Section 230 because they seek to hold eBay responsible for publishing third-party listings." Section 230 states in part: "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" (
via Cornell LLI).
eBay also argued that it does not "sell" the items in question "for a simple reason: to "sell" means to transfer possession or title in exchange for a price, and the Complaint does not allege that eBay owned or possessed defeat devices."
The government argued in its Opposition to eBay's Motion to Dismiss filed on the same day (February 9): "eBay is not, however, the innocent bystander it purports to be. The Complaint's allegations, taken as true, demonstrate that eBay participates in and controls every transaction on ebay.com."
It continued (it's a dense paragraph, so we're presenting it with line breaks):
"eBay actively markets the products listed on ebay.com prior to sale, including "sponsoring" certain items;
"manages all aspects of the sales transaction (creating a virtual eBay shopping cart, accepting the purchaser's payment on an eBay payment page, processing that payment, taking a fee, paying the third-party merchant, and collecting and paying sales taxes and other regulatory fees);
"prohibits merchants and buyers from transacting business off its site;
"and provides a money-back guarantee in the event the product is not delivered."
It's an interesting issue - while Section 230 has long protected marketplaces, eBay takes much more control over transactions now than in its early days - at what point does it bear legal responsibility for the items sold on its platform?