By asahifile 
eBay is Cleared of DOJ Lawsuit Over Sales of Hazardous Chemicals
In a significant legal battle, eBay has successfully defeated a lawsuit initiated by the U.S. Department of Justice (DOJ), which alleged that the company allowed the sale of numerous banned products that posed environmental risks and public safety concerns. The lawsuit specifically cited the sale of at least 343,011 aftermarket vehicle products designed to tamper with emissions control systems and approximately 23,000 unregistered or misbranded pesticides. It also targeted items containing methylene chloride, a chemical associated with serious health hazards.
U.S. District Judge Orelia Merchant ruled that the DOJ failed to establish eBay’s liability for these products, emphasizing that eBay is protected under Section 230 of the Communications Decency Act, which shields online platforms from being held liable for third-party content. Judge Merchant referenced a previous ruling involving Tiffany & Co., where it was affirmed that eBay did not sell counterfeit goods; rather, the vendors on the site did.
Despite this victory, the DOJ was able to prove that eBay did violate the Toxic Substances Control Act (TSCA) regarding some methylene chloride listings. The ruling highlighted that eBay was indeed a “retailer” for products containing this harmful chemical. Nevertheless, eBay contended that the overarching Section 230 law shielded it even from this allegation, arguing that without specific claims of failing to remove problematic listings, the DOJ’s lawsuit could not stand.
In the past, eBay has opted for settlement in similar cases, as exemplified by a recent case where the company agreed to pay $59 million over sales connected to drug-related issues. This contrasts the environmental lawsuit, where eBay did not seek a settlement but instead defended its practices robustly.
An eBay representative expressed gratitude for the court’s decision, reinforcing the company’s commitment to fostering a safe marketplace and continuing its proactive efforts to prevent the listing of prohibited items. As a result of the dismissal, the DOJ has been barred from re-filing the case in the same court, although an appeal remains a possibility.
The implications of this ruling reaffirm eBay’s stance on its role as an intermediary platform while raising important questions about the responsibilities of online marketplaces in preventing the sale of hazardous products.