Technology & Marketing Law Blog
Eric Goldman
April 30, 2018
[Though most of these rulings are defense-favorable, Congress recently eviscerated Section 230 and isn’t done ruining its greatest online policy masterpiece]
Twitter Defeats Defamation Claim
Case citation: Frenken v. Hunter, 2018 WL 1964893 (N.D. Cal. April 26, 2018)
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Section 230 Protects Instagram Link to Defamatory Content
Case citation: Marfione v. Kai USA, 2018 WL 1519042 (W.D. Pa. March 28, 2018)
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No Liability for Cyber-Harassment Attack, Even if the Service Could Have Been Designed Differently
Case citation: Herrick v. Grindr LLC, 2018 WL 566457 (SDNY Jan. 25, 2018)
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Section 230 Protects Message Board
Allnurses runs a message board related to nursing. The plaintiff offers Active Test Prep (ATP), a test prep service for nursing exams. Allnurses users allegedly defamed ATP in message board posts. Allnurses defends on Section 230 grounds, which the court largely accepts. ATP claimed the users were Allnurses’ “agents” but didn’t marshal good evidence to support the assertion. Also, the court says Section 230 applies to claims that Allnurses “ratified and adopted” the user comments. In a footnote, the court says: “ATP argues that Allnurses selectively removed content and ultimately closed the thread—but that is precisely the type of action that the CDA was intended to protect.”
The opinion also addresses what it means to “like” an allegedly defamatory post: “to ‘Like’ something online is not to vouch for its veracity, and certainly not in whole.” See Bland v. Roberts.
ATP also claimed breach of contract for Allnurses’ failure to enforce negative behavioral covenants in the TOS (have you noticed how often plaintiffs are trying this attempted workaround to Section 230?). The court says that Allnurses’ contract formation failed because ATP “does not allege, and the record does not show, that users must check a box accepting the statement ‘Your participation implies full acceptance with our Terms of Service.’” [Protip: you never want to “imply” anything about your contract terms or formation process.] Furthermore, ATP can’t be a third party beneficiary of the Allnurses/user contract because “by this logic, the entire world is an intended beneficiary of the TOS. That cannot be right.” The promissory estoppel workaround fails because the TOS terms are too indefinite.
Case citation: East Coast Test Prep LLC v. Allnurses.com, Inc., 2018 WL 614732 (D. Minn. Jan. 29, 2018)
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Section 230 Helps Defeat Product Liability Claim
A retractable leash permanently injured the plaintiff’s eye. She bought the leash from an Amazon Marketplace merchant. She sued Amazon for various products liability claims. The court says no. First, the court says Amazon wasn’t the seller of goods in its marketplace. Sorry this passage is so painful, but don’t shoot the messenger:
Like an auctioneer, Amazon is merely a third-party vendor’s “means of marketing,” since third-party vendors—not Amazon—“cho[o]se the products and expose[ ] them for sale by means of” the Marketplace. Because of the enormous number of third-party vendors (and, presumably, the correspondingly enormous number of goods sold by those vendors) Amazon is similarly “not equipped to pass upon the quality of the myriad of products” available on its Marketplace. And because Amazon has “no role in the selection of the goods to be sold,” it also cannot have any “direct impact upon the manufacture of the products” sold by the third-party vendors.
The Amazon Marketplace serves as a sort of newspaper classified ad section, connecting potential consumers with eager sellers in an efficient, modern, streamlined manner. Because subjecting it to strict liability would not further the purposes of § 402A, as revealed by Musser and other Pennsylvania cases, it cannot be liable to the Oberdorfs under a strict products liability theory.
Calling Amazon Marketplace a “classified ad section” is definitely defense-favorable, but it’s a weak analogy that other courts would reject. See Airbnb v. San Francisco. Regarding Section 230, the court says:
Since the Oberdorfs’ claims for strict products liability, misrepresentation, and breach of warranty have all been disposed of supra, this Court need only consider Amazon’s CDA argument with respect to the Oberdorfs’ negligence and negligent undertaking claims. Although the Complaint frames those claims broadly, it is clear from the Oberdorfs’ papers that they are, in fact, attempting to hold Amazon liable for its role in publishing an advertisement for The Furry Group’s product. In other words, the Oberdorfs are attempting to “treat[ Amazon] as the publisher or speaker of…information provided by” The Furry Group.
Uncited cases in this genre include: Inman v. Technicolor, McDonald v. LG (reaching a different conclusion on Section 230), Hinton v. Amazon, and Englert v. Alibaba.
Case citation: Oberdorf v. Amazon.com, Inc., 2017 WL 6527142 (M.D. Pa. Dec. 21, 2017)
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Publicity Rights Claim Preempted by Section 230 in a Court Outside the 9th Circuit
Case citation: Parker v. PayPal, 2017 WL 3508759 (E.D. Pa. Aug. 16, 2017)
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