Lars GENTRY v. EBAY, INC.
121 Cal. Rptr. 2d 703 (Cal. App. 2002)
O'ROURKE, J.
Lars Gentry, Henry
Camp, Mike Hyder, James Conboy, William Pommerening, and Michael Osacky
(appellants) appeal a judgment of dismissal entered after the trial court
sustained eBay, Inc.'s (eBay) demurrer to appellants' second amended complaint
without leave to amend. In that
pleading, appellants alleged eBay violated California's Autographed Sports
Memorabilia statute (Civ.Code, § 1739.7) by failing to furnish a
certificate of authenticity to persons who purchased autographed sports-related
collectibles through its web site.
Appellants also alleged eBay was negligent and engaged in unfair
business practices under the Unfair Competition Law (UCL) (Bus. and Prof.Code, §
17200 et seq.) based on its failure to supply such certificates as well
as its acts in distributing false certificates, permitting other false
representations to be placed on its web site, and making its own false or
misleading representations. In part,
the trial court ruled eBay was not a dealer within the meaning of Civil Code
section 1739.7 and appellants failed to plead around the statutory immunity
provided by section 230 of title 47 of the United States Code (hereinafter
section 230), which otherwise protected eBay's conduct. Appellants contend the trial court erred in
sustaining eBay's demurrers without leave to amend because (1) they sufficiently
alleged eBay is an auctioneer that provides the requisite description of
collectibles as being autographed within the meaning of Civil Code section
1739.7; and (2) section 230 does not
preempt their causes of action against eBay.
We conclude
appellants cannot state a cause of action against eBay under Civil Code section 1739.7 because their
allegations reveal eBay did not sell or offer to sell the collectibles at
issue. Additionally, we conclude
imposition of Civil Code section 1739.7 liability on eBay in this particular
case, as well as liability for negligence and violation of the UCL, is
inconsistent with section 230 because appellants' causes of action ultimately
hold eBay responsible for misinformation or misrepresentations originating with
other defendants or third parties.
Because appellants cannot maintain
their Civil Code section 1739.7 claim, and section 230 otherwise immunizes eBay
from civil liability under these circumstances, we affirm the judgment of
dismissal.
FACTUAL AND PROCEDURAL BACKGROUND
eBay promotes itself
as the world's largest online marketplace for the sale of goods and services
among its registered users. It operates an Internet-based service in which
it enables member sellers to offer items for sale to member buyers in what eBay
characterizes as either auction-style or fixed price formats. To better enable users to place items for
sale on its site, eBay provides descriptions to its users under various product
categories and subcategories. For
sports items, eBay's web site has a sports product category with the following
subcategories: "Sports:
Autographs"; "Sports: Memorabilia"; "Sports:
Sporting Goods" and "Sports: Trading Cards." eBay's
"Sports: Autographs"
subcategory is further organized into sub-subcategories to differentiate
autographed sports collectibles by particular leagues.
In September 1995,
various individuals embarked on a plan to sell faked autographed sports
memorabilia to consumers. Specifically,
Angelo Marino, Gloria Marino, Gregory Marino, John Marino and Kathleen Marino
(the Marino defendants) purchased sporting goods items and photographs from
retail stores, forged signatures of professional athletes upon them, and
employed Wayne Bray and Donald Frangipani to produce false certificates of
authenticity for the items. The Marino
defendants then sold most of the forged items to Stanley Fitzgerald and Phil
Scheinman, larger dealers who mostly used eBay auctions to eventually sell the
forged items to consumers. Stanley
Fitzgerald did business as "Stan The Man Memorabilia" and
"Stan's Sports Memorabilia."
Phil Scheinman did business as "Smokey's Sportscard, Inc."
Appellants are
individuals who purchased forged autographed sports items including baseballs,
photographs and autographed pieces of paper or "cuts," from
Fitzgerald, Scheinman or the Marino defendants through eBay.
Intending to act on
behalf of all purchasers of autographed sports collectibles purchased through
eBay from September 1, 1995, to the time of trial, appellants sued the Marino
defendants, Bray, Frangipani, Fitzgerald, Scheinman and eBay. Their
first-amended complaint asserted causes of action
against eBay for negligence, violation of the UCL, violation of Civil Code
section 1739.7 and for injunctive relief.
In that pleading, appellants alleged eBay, having identified itself as
an auctioneer in press releases and provided a venue for auctions,
"violated California law by either failing to provide a certificate of
authenticity expressly warranting the [autographed
sports memorabilia] or failing to insure that such a certificate was being
provided by any other party to the auction." According to their allegations, during the
class period, eBay auctioned thousands of items of sports memorabilia created
by the Marino defendants, a substantial number of which were accompanied by
fraudulent certificates of authenticity and "expert opinions"
produced by Bray and Frangipani. eBay charged placement fees to dealers listing
an item for auction, and success fees (percentage fees) when items were
sold. Further, appellants alleged, eBay
gave customers a false sense of confidence by maintaining a forum that
permitted dealers and consumers to give positive or negative feedback to other
dealers or consumers, giving endorsements to certain dealers based on the
volume of sales and positive feedback ratings, and advising users it may
suspend or terminate their account if it finds them to have engaged in
fraudulent activity in connection with the web site.
Appellants alleged
that as early as 1996, eBay received numerous complaints from consumers and
warnings from governmental agencies that a substantial amount of forged sports memorabilia was being
auctioned on eBay, but eBay ignored the warnings and allowed the forged sports
memorabilia scheme to continue in order to continue to reap millions of dollars
in profits for itself.
eBay generally
demurred to appellants' UCL, Civil Code section 1739.7 and injunctive relief
causes of action. The trial court
sustained the demurrers, granting appellants ten days leave to amend in order
to plead around the federal statutory immunity of section 230 as to their UCL
claim and allege that eBay provided a description of items listed on its web
site as being autographed for purposes of their Civil Code section 1739.7
claim. The court sustained without leave to amend eBay's demurrer to
appellants' cause of action for injunctive relief on the ground it was not an
independently cognizable cause of action.
Appellants' second
amended complaint added several new allegations. They alleged: "At all relevant times, eBay was a
'dealer' as defined in Civil Code section 1739.7(a)(4) in that, among other
things, eBay engages in sales transactions, conducted by means of written
exchanges, between eBay and its users.
The written exchanges consist of a series of invitations for offers for
the purchase of collectibles made by eBay and offers to purchase made by eBay
users and culminates in the acceptance by eBay of the highest or most favorable
offer made by a participating user. eBay engages in the sale or offer for sale of autographed collectibles in
or from this state. eBay provides descriptions of collectibles as being
autographed as defined in Civil Code [sic ]. It is undisputed that eBay has never
furnished a [certificate of authenticity] with a collectible at the time of
sale." Appellants further alleged
eBay "tightly regulates the transactions it conducts" on its web
site, controls the content of its web site by delisting items it deems questionable
and filters the web site to prevent items from being sold. They alleged eBay "provided
descriptions of the sports items" as being autographed under the
above-identified product categories and subcategories, including the
subcategory "Sports: Autographs"
and that, "[o]ftentimes, eBay provided a standardized description of these
sports items with a photo."
. . . Appellants
sought to plead around the immunity of section 230 by alleging eBay was itself
responsible for creating or developing information on its web site, and that
the information was not obscene or otherwise similarly objectionable.
eBay again demurred. With respect to the UCL and negligence
causes of action, it argued appellants failed to plead around section 230's
statutory immunity. As to the Civil Code
section 1739.7 cause of action, eBay argued:
(1) it is not a dealer and does not provide descriptions of specific
collectibles within the meaning of Civil Code section 1739.7; (2) plaintiffs did not allege the items they
purchased through eBay were sent from or received in the state of
California; and (3) it could not be held
liable for aiding and abetting sales under that statute. eBay presented the
declaration of its associate general counsel, who explained the operation of
eBay's web site and specifically how items were assigned their general category
designations. He averred that members
who wished to place an item for sale on eBay would themselves choose the main
category (e.g., "Sports") and subcategories (e.g., "Autographs")
under which their item would be listed for sale. Thereafter, the web site would prompt the
seller to provide other information, including the title and description of the
item. eBay requested that the court take judicial notice under Evidence Code
section 452, subdivision (h) of the fact "[a] user listing an item for
sale on eBay's web site selects the category and subcategory under which her
item will appear on eBay's web site."
Appellants did not object to or otherwise oppose eBay's request.
The trial court
granted eBay's unopposed request for judicial notice and sustained eBay's demurrers without leave to
amend. It ruled appellants could not
allege eBay "provides a description of that collectible as being
autographed" within the meaning of Civil Code section 1739.7 because
eBay's web site only included category labels, which were not descriptions of
specific collectibles and which were actually chosen by the user, not eBay. The
court also concluded the statute was silent as to aiding and abetting
liability. As for the negligence and UCL causes of action, it ruled appellants
had not pleaded around the immunity provided by section 230. It thereafter entered a judgment of
dismissal in eBay's favor. Appellants
timely filed their notice of appeal.
DISCUSSION
I. Standard of Review
"An appellate court's ' "only task in
reviewing a ruling on a demurrer is to determine whether the complaint states a
cause of action." ' [Citations.]
The reviewing court assumes the truth of allegations in the complaint
which have been properly pleaded and gives it a reasonable interpretation by
reading it as a whole and with all its parts in their context. [Citations.]
However, the assumption of truth does not apply to contentions,
deductions, or conclusions of law and fact.
[Citation.] Furthermore, any allegations that are contrary to the law or
to a fact of which judicial notice may be taken will be treated as a
nullity. [Citations.]" (Gulf Ins. Co. v.
TIG Ins. Co. (2001) 86 Cal.App.4th 422, 429, 103 Cal.Rptr.2d
305.) . . . . Where the complaint's
allegations or judicially noticeable facts reveal the existence of an
affirmative defense, the "plaintiff must 'plead around' the defense, by
alleging specific facts that would avoid the apparent defense. Absent such allegations, the complaint is
subject to demurrer for failure to state a cause of action ...." . . . .
II. Claim for Alleged Violation of the
Autographed Sports Memorabilia Statute
A. The Statute
Civil Code section
1739.7, entitled Autographed Sports Memorabilia, regulates the sale of
autographed sports items, broadly termed "collectibles." (Civ.Code, §
1739.7, subd. (a)(2).) The statute generally forbids dealers of
collectibles from representing an item as a collectible "if it was not
autographed by the sports personality in his or her own hand." (Civ.Code, § 1739.7, subd. (c); Upper Deck Authenticated, Ltd. v. CPG
Direct (S.D.Cal.1997)
971 F.Supp. 1337, 1346.) It
also places various obligations on such dealers. Specifically, subdivision (b) of the statute
requires dealers to provide certificates of authenticity of a prescribed form
and content. It provides in part: "Whenever a dealer, in selling or offering
to sell to a consumer a collectible in or from this state, provides a
description of that collectible as being autographed, the dealer shall furnish
a certificate of authenticity to the consumer at the time of sale. The certificate of authenticity shall be in
writing, shall be signed by the dealer or his or her authorized agent, and
shall specify the date of sale." (Civ.Code, § 1739.7, subd. (b).)
The statute defines
a dealer as follows: " 'Dealer'
means a person who is in the business of selling or offering for sale
collectibles in or from this state, exclusively or nonexclusively, or a person
who by his or her occupation holds himself or herself out as having knowledge
or skill peculiar to collectibles, or to whom that knowledge or skill may be
attributed by his or her employment of an agent or other intermediary that by
his or her occupation holds himself or herself out as having that knowledge or
skill. 'Dealer' includes an auctioneer
who sells collectibles at a public auction, and also includes persons who are
consignors or representatives or agents of auctioneers. 'Dealer' includes a person engaged in a mail
order, telephone order, or cable television
business for the sale of collectibles." (Civ.Code, § 1739.7, subd. (a)(4).)
B. Business of
Selling or Offering to Sell Collectibles
Appellants contend
they stated a cause of action against eBay under Civil Code section 1739.7 by
alleging eBay is an auctioneer that engages in the sale or offer for sale of
autographed collectibles in or from this state, provides descriptions of
collectibles as being autographed, yet has never furnished the requisite
certificates of authenticity under the statute.
eBay advances
several arguments in support of the proposition appellants cannot, as a matter
of law, allege it is a dealer within the meaning of Civil Code section
1739.7. Preliminarily, it maintains we
must reject the majority of appellants' allegations--those parroting the
language of the statute--as mere legal conclusions and focus upon those
allegations that flesh out the details of the sales transactions. eBay argues
the nonconclusory allegations of the second amended complaint, combined with
judicially noticeable facts as to the operation of its web site, demonstrate
eBay (1) does not provide descriptions within the meaning of Civil Code section
1739.7 because it is actually the user who selects the product categories of
his or her item for sale; and (2) does
not sell or offer to sell collectibles because, as appellants allege in other portions of their pleading,
it is in fact the individual defendants who sold the forged items to
appellants. We are persuaded by the latter
argument.
As stated, liability as a dealer under Civil Code
section 1739.7 requires that the dealer be exclusively or nonexclusively
"in the business of selling or offering for sale collectibles in or from
this state." (Civil Code, § 1739.7,
subd. (a)(4).) Here, appellants'
specific allegations reveal eBay is not in the business of selling or offering
to sell the collectibles at issue;
rather, it is the individual defendants who sold the items to
plaintiffs, using eBay as a venue. . .
. .
C. Section 230
Immunity
Notwithstanding our conclusion above, we additionally hold,
under the facts presented, placing liability upon eBay for failing to provide a
warranty under Civil Code section 1739.7
would be inconsistent with and hence preempted by section 230, which was
incorporated by Congress into the final version of the Communications Decency
Act (and the Telecommunications Act) of 1996.
(See Sen.Rep.No. 104-230 (1996 2d Sess.) pp. 86-88; Pub.L.No. 104- 104, § 509 (1996), 110 Stat. 56.) The operative provision of Section 230
states: "[n]o 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." (47
U.S.C. § 230(c)(1).) The statute further provides:
"(e) Effect on other laws
..........
"(3) State Law
"Nothing in this section shall be
construed to prevent any State from enforcing any State law that is consistent
with this section. No cause of
action may be brought and no liability may be imposed under any State or local
law that is inconsistent with this section." (47 U.S.C. §
230(e)(3), emphasis added.)
In Zeran v. America
Online, Inc. (4th Cir.1997)
129 F.3d 327 (Zeran ),
cert. den. (1998) 524 U.S. 937, the
court held section 230, by its "plain language," created a federal
immunity to any cause of action that would make interactive service providers
liable for information originating with a
third-party user of the service. (Id. at p. 330.) "Specifically, § 230 precludes courts from
entertaining claims that would place a computer service provider in a
publisher's role. Thus, lawsuits
seeking to hold a service provider liable for its exercise of a publisher's
traditional editorial functions--such as deciding whether to publish, withdraw,
postpone or alter content--are barred."
(Zeran, supra, at p. 330.) Reiterating Congress' findings and policy
statements in section 230 subdivisions (a) and (b),
the court observed: "Congress
recognized the threat that tort-based lawsuits pose to freedom of speech in the
new and burgeoning Internet medium. The
imposition of tort liability on service providers for the communications of
others represented, for Congress, simply another form of intrusive government
regulation of speech. Section 230 was
enacted, in part, to maintain the robust nature of Internet communication and,
accordingly, to keep government interference in the medium to a minimum.... [¶
] None of this means, of course, that the original culpable party who posts defamatory messages would escape
accountability. While Congress acted to
keep government regulation of the Internet to a minimum, it also found it to be
the policy of the United States 'to ensure vigorous enforcement of Federal
criminal laws to deter and punish trafficking in obscenity, stalking, and
harassment by means of computer.'
[Citation]. Congress made a
policy choice, however, not to deter harmful online speech through the separate
route of imposing tort liability on
companies that serve as intermediaries for other parties' potentially injurious
messages." (Zeran, supra, at pp. 330-331.)
Other courts have
applied Zeran's
reasoning to bar not only defamation claims, but other tort causes of action
asserted against interactive service providers.
(See e.g. Kathleen R. v. City of Livermore (2001) 87 Cal.App.4th
684, 692, 104 Cal.Rptr.2d 772) [court of appeal affirmed judgment of dismissal in City's favor holding a city was
immune under section 230 from liability under state causes of action for misuse
of public funds, nuisance and premises liability for library's acts in providing
computers allowing access to pornography];
Doe v. America Online, Inc. (Fla.2001) 783 So.2d 1010, 1013-1017
[following Zeran
in concluding section 230 directly preempted Florida law in a negligence action
based upon America Online, Inc.'s (AOL) distribution of information depicting
child pornography; the court rejected
the argument that allegations AOL knew or should have known about the
distribution of such materials created liability distinct from that of any
publisher]; Schneider v. Amazon.com,
Inc. (2001) 108 Wash.App. 454, 31 P.3d 37 [Internet book vendor was immune
from tort (negligent misrepresentation, interference with business expectancy)
and contractual liability arising from allegedly false statements about the
plaintiff and his business made by third parties in the book review
section]; PatentWizard, Inc. v.
Kinko's Inc. (D.S.D.2001) 163
F.Supp.2d 1069, 1071-1072 [defamation liability]; Ben Ezra,
Weinstein, & Co. v. America Online, Inc. (10th Cir.2000)
206 F.3d 980, 984-985; Doe One v. Oliver
(Super.Ct.2000) 46 Conn.Supp. 406, 755 A.2d 1000, 1003-1004 [barring claims for
negligence, negligence per se, failure to prevent transmission of e-mail in
violation of a Connecticut statute, intentional nuisance and infliction of
emotional distress based upon sending of on-line e-mails]; Blumenthal v. Drudge (D.D.C.1998) 992
F.Supp. 44, 49-52 [barring defamation claims
against AOL for statements made in the Drudge Report, an online gossip column,
even though AOL had contracted for the reports, retained certain editorial
rights as to its content, and aggressively promoted the report; the court expressed sympathy with the
plaintiff but concluded Congress had made a policy choice to provide immunity
"even where the interactive service provider has an active, even
aggressive role in making available content prepared by others"].)
Subsection (c)(1) of
section 230 thus immunizes providers of interactive computer services (service
providers) and their users from causes of action asserted by persons alleging
harm caused by content provided by a third party. This form of immunity requires (1) the
defendant be a provider or user of an interactive computer service; (2) the cause of action treat the defendant as
a publisher or speaker of information;
and (3) the information at issue be provided by another information
content provider. (47 U.S.C. § 230(c)(1).)
Appellants
concede for purposes of this appeal that eBay is an interactive computer
service provider. And appellants do not expressly challenge the
application of section 230 to liability based on content placed on eBay's web
site by eBay's users or other third parties. Rather, they contend section 230
does not apply because they seek to enforce eBay's independent duty under the
statute to furnish a warranty as the "
'provider' of descriptions," not as a publisher. We disagree.
The substance of appellants' allegations reveal they
ultimately seek to hold eBay responsible for conduct falling within the reach
of section 230, namely, eBay's dissemination of representations made by the
individual defendants, or the posting of compilations of information generated
by those defendants and other third parties.
Under section 230, eBay cannot be "treated as the publisher or
speaker" of content supplied by other information content providers. (47
U.S.C. § 230(c)(1).) If by imposing liability under Civil Code
section 1739.7 we ultimately hold eBay responsible for content originating from
other parties, we would be treating it as the publisher, viz., the original
communicator, contrary to Congress's expressed intent under section 230(c)(1)
and (e)(3).
In connection with appellants' argument relating to the
sufficiency of their Civil Code section 1739.7 cause of action, appellants
point out they alleged eBay provided its own descriptions of collectibles
through its lists of product categories, but also assert, to the extent the
individual defendants created the ultimate descriptions of their faked
collectibles, eBay provided those descriptions within the meaning of the
statute by making them available to the users of its web site. In opposition to eBay's demurrer, they
argued: "It does not matter under
[Civil Code section] 1739.7 who 'creates' the original specific description of
the memorabilia, because the obligation to furnish a warranty arises when a
dealer 'provides' the description in offering or selling the item and the
description characterizes the item as being autographed.... Therefore, although
the specific description of an item originates with the seller, eBay, by making
the description available over its auction website ..., then 'provides' the
description to its consumers."
While the fact eBay does not create the
description may be of no significance to liability under Civil Code section
1739.7 as appellants maintain, it is highly significant for purposes of
assessing the application of section 230.
Appellants do not dispute the fact, judicially noticed by the trial
court, that it was dealers Fitzgerald and
Scheinman, not eBay, who chose their own category description for the item
offered for sale. Thus, for purposes of
applying section 230 immunity, we consider it was the individual defendants who
falsely identified the product as authentically autographed in order to place
their items on eBay for sale. On the
basis of appellants' allegations, holding eBay responsible for providing a
warranty under Civil Code section 1739.7 when it merely made the individual
defendant's false product descriptions available to other users on its web
site, or provided the web site on which the individual defendants designated
their collectibles as autographed, puts eBay in the shoes of the individual
defendants, making it responsible for their publications or statements. We therefore conclude enforcement of
appellants' Civil Code section 1739.7 cause of action is inconsistent with
section 230 because it would " 'stand[ ] as an obstacle to the
accomplishment and execution of the full purposes and objectives of Congress.'
" (English
v. General Elec. Co. (1990) 496 U.S.
72, 79)
III. Negligence Cause of Action
Apart from the cause of action under Civil Code section
1739.9, which we have held is barred, appellants' negligence cause of action is
based on allegations that eBay itself misrepresented the safety of purchasing
items from the individual defendants and knew or should have known the
individual defendants were conducting unlawful practices but failed to ensure
they comply with the law. In an attempt
to plead around section 230 with respect to these causes of action, appellants
generally allege eBay was an information content provider in that it was
responsible for the creation of information, or development of information, for
the online auction it provided through the Internet; that eBay did not act as an Internet service
provider; and the information at issue (descriptions of collectibles as
autographed) did not concern the publication of obscene or similarly
objectionable materials.
These conclusory
and argumentative allegations are followed by more specific averments. Appellants more specifically described the
information purportedly developed by eBay for its "safety program,"
identifying it as consisting of a color-coded star symbol, a Power Sellers
endorsement, and a Feedback Forum.
Appellants alleged: "eBay
encourages its users to rely upon its 'Feedback Forum' prior to engaging in a
sales transaction. The Feedback Forum
purportedly allows dealers and consumers to rate a sales transaction
with a compliment (a 'Positive Feedback'), a criticism (a 'Negative Feedback'),
or other comments (a 'Neutral Feedback'). eBay has advertised that, 'A positive
eBay rating is worth its weight in gold.'
A dealer or consumer who achieves a designated level of Positive
Feedback is awarded a star symbol display
next to the user name, which is color coded to indicate the amount of Positive
Feedback received by the user. [¶ ] ...
In addition to the Feedback Forum, eBay designed a 'Power Sellers' endorsement,
which purportedly is an award given to select eBay dealers based on the volume
of sales and Positive Feedback ratings.
[¶ ] ... In reality, however, eBay's 'safety' programs have contributed
to enormous damage to autographed sports memorabilia consumers. For example, the Feedback Forum allows anyone
to rate a dealer, even if there has never been a sales transaction between the
parties. Thus, Fitzgerald and Scheinman
have at least hundreds of Positive Feedback ratings which are unrelated to any
sales transactions. Most, if not
all, of these Positive Feedback ratings are self-generated or provided by other
co-conspiring dealers." (Bold
in original; emphasis added.)
None of these
allegations place eBay outside the immunity for service providers. As eBay points out, the allegations reveal
that eBay's Feedback Forum is comprised of negative or positive information
provided by third party consumers and dealers.
Likewise, the star symbol and "Power Sellers" designation is
simply a representation of the amount of such positive information received by
other users of eBay's web site.
Appellants' negligence claim is based on the assertion that the
information is false or misleading because it has been manipulated by the
individual defendants or other co-conspiring parties. Based on these allegations, enforcing appellants' negligence claim would
place liability on eBay for simply compiling false and/or misleading content
created by the individual defendants and other co-conspirators. We do not see such activities transforming
eBay into an information content provider with respect to the representations
targeted by appellants as it did not create or develop the underlying
misinformation. (E.g., Ben Ezra,
Weinstein, and Company, Inc. v. America Online, Inc., supra, 206 F.3d 980,
985-986 [AOL's communication of errors in stock information provided
by other entities, and deletion of stock symbols and other alteration of
information from its data base to correct such errors was not "creation or
development" of information under section 230's definition of an
information content provider].) We are
constrained from enforcing such liability under California law because it would
treat eBay as the publisher or speaker of the individual defendants' materials,
and thereby conflict with section 230.
We reach the same
conclusion with regard to appellants' general assertion that eBay knew or
should have known about the individual defendant's illegal or fraudulent conduct
but failed to take steps to ensure they comply with the law. This claim seeks to hold eBay responsible
for having notice of illegal activities conducted by others on its web site,
and for electing not to take action against those third parties, including by
withdrawing or somehow altering the content placed by them. This is the classic kind of claim that Zeran
found to be preempted by section 230, as one that seeks to hold eBay liable for
its exercise of a publisher's traditional editorial functions. (Zeran, supra, 129 F.3d at p.
330.) Such claims have been
uniformly rejected by the courts that have considered them.
Finally, taking as true the fact eBay makes the statement
on its web site that a positive eBay rating is "worth its weight in
gold," such an assertion cannot support a cause of action for negligent
misrepresentation regardless of federal statutory immunity because it amounts
to a general statement of opinion, not a positive assertion of fact. An essential element of a cause of action
for negligent misrepresentation is that the defendant must have made a
misrepresentation as to a past or existing material
fact. . . . . Although the line of
demarcation between expressions of fact and opinion can be unclear at times,
this is not such a case. This kind of vague, highly subjective statement as to
the significance of a positive rating is not the sort of statement that a
consumer would interpret as factual or upon which he or she could reasonably
rely. . . . .
DISPOSITION
The judgment is
affirmed.