Schneider v. Amazon.com, Inc., No. 46791-3-I, (Slip Op., September 17, 2001).

Schneider v. Amazon.com, Inc., No. 46791-3-I, (Slip Op., September 17, 2001).



Sept. 2001         SCHNEIDER v. AMAZON.COM, INC.                  1

                        Cause No. 46791-3-I



        [No. 46791-3-I. Division One. September 17, 2001.]

   JEROME SCHNEIDER, an individual, ) No. 46791-3-I

                                    )

                         Appellant, ) DIVISION ONE

                                    )

                                 v. )

                                    )

     AMAZON.COM, INC., a Washington ) PUBLISHED OPINION

     corporation; and JOHN DOES and )

     JANE DOES I-X, and the marital )

     communities comprised thereof, )

                                    ) FILED: September 17, 2001

                       Respondents. )

                                    )



  Trial Court: Superior Court, King County, No. 00-2-03998-1.SEA,

Robert H. Alsdorf, J., March 31, 2000.

  Myers & Parker, by Michael D. Meyers, for appellant.

  Perkins Coie LP, by Elizabeth L. McDougall-Tural, for respondents.



  ELLINGTON, J. - The Communications Decency Act immunizes Amazon.com,

Inc. from liability for allegedly defamatory comments posted by third

parties on Amazon's web site. We therefore affirm dismissal of all

claims against Amazon.



                                 FACTS

  Jerome Schneider wrote several books relating to taxation and asset

protection. The books are for sale at the web site of Amazon.com, Inc.

(Amazon). In addition to enabling purchases, Amazon's web site provides a

forum for visitors to air their opinions about books. Amazon sets the

following guidelines for comments:

    While we appreciate your comments, we respectfully request

  that you refrain from including the following in your review:

  -    Profanity, obscenities, or spiteful remarks.

  -    Time-sensitive material (i.e., promotional tours, seminars,

  lectures, etc.).

  -    Single-word reviews. We want to know why you liked or

  disliked the book.

  -    Comments focusing solely on the author.

  -    No spoilers!  Please don't reveal crucial plot elements.

  -    Phone numbers, mail addresses, URLs.

  -    Availability, price, or alternative ordering/shipping information. /1



  Visitors to Amazon's web site are informed that "Any review in violation

of these guidelines may not be posted." /2  A visitor who submits a review

grants Amazon a non-exclusive royalty-free right to use the review.

  Amazon posted visitors' comments about Schneider and his books. The

comments were negative; one alleged Schneider was a felon. Schneider's

employee complained. Amazon's representative agreed that one or more of

the postings violated the guidelines and should be removed, and promised

to take steps to remove the postings within one to two business days.

Two days later, the posting had not been removed.

  Schneider filed an action for defamation and tortious interference

with a business expectancy, naming Amazon and multiple "John and Jane

Does." Amazon moved to dismiss under CR 12(b)(6) on grounds it was

immune from liability under the Communications Decency Act of 1996, 47

U.S.C. § 230. Schneider then amended his complaint, deleting the

defamation claim and alleging negligent misrepresentation,

tortious interference, and breach of contract. The amended complaint

alleges the anonymous postings contained "false, defamatory and/or

scurrilous comments regarding Mr. Schneider and his business," and that

Amazon exercises editorial discretion and decision-making authority over

the posting of comments at its site. /3

  Amazon filed a second motion to dismiss on the same grounds. The trial

court granted the motion and dismissed all claims against Amazon with

prejudice. Schneider filed a motion for reconsideration requesting

permission to amend the complaint to plead foreign law, which the trial

court denied.



                                DISCUSSION

  This court reviews a CR 12(b)(6) dismissal de novo. /4 Dismissal is

appropriate only if it appears beyond a reasonable doubt that the

complaint alleges no facts that would justify recovery. /5  The

plaintiff's allegations and any reasonable inferences therefrom are

accepted as true. /6  "If a plaintiff can prove any set of facts

consistent with the complaint that would entitle him or her to relief,

including hypothetical facts not in the formal record, then the claim

should not be dismissed." /7



  Immunity under the Communications Decency Act

  Under the Communications Decency Act of 1996 (CDA), interactive computer

service providers are immune from publisher liability. /8  The statute

provides in relevant part:

  (c)  Protection for "good samaritan" blocking and screening of

    offensive material

    (1) Treatment of publisher or speaker

      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.

    (2) Civil liability

      No provider or user of an interactive computer

    service shall be held liable on account of-

         (A)  any action voluntarily taken in good faith to

    restrict access to or availability of material that the

    provider or user considers to be obscene, lewd,

    lascivious, filthy, excessively violent, harassing, or

    otherwise objectionable, whether or not such material is

    constitutionally protected; or

         (B)  any action taken to enable or make available to

    information content providers or others the technical

    means to restrict access to material described in

    paragraph (1). /9



  Three elements are thus required for § 230 immunity: the defendant must be

a provider or user of an "interactive computer service"; the asserted

claims must treat the defendant as a publisher or speaker of information;

and the information must be provided by another "information content

provider." Schneider argues none of these elements was satisfied here.



  1. Amazon Is a Provider or User of Interactive Computer Services

  The statute defines "interactive computer service" as "any information

service, system, or access software provider that provides or enables

computer access by multiple users to a computer server, including

specifically a service or system that provides access to the Internet and

such systems operated or services offered by libraries or educational

institutions." /10  Thus, to qualify for immunity, a defendant must be a

provider or user of an information service or system that "enables

computer access by multiple users to a computer server." Schneider argues

§ 230 does not extend immunity to web site hosts who do not enable access

to the Internet.

  Internet service providers (ISP) are recognized as § 230 providers of

interactive computer services. The seminal decision is Zeran v.

America Online, Inc. /11  There, a third party posted a message on an

America Online (AOL) bulletin board, advertising t-shirts with tasteless

slogans related to the bombing of the Oklahoma City federal building.

Those interested in purchasing the t-shirts were instructed to call the

phone number Zeran used for personal and business purposes. Zeran received

a staggering number of phone calls, consisting of angry and derogatory

messages as well as death threats. Zeran contacted AOL several times and

received assurances that the message would be removed and the responsible

individual's account closed. Nevertheless, several more messages were

posted on AOL, and the volume of death threats increased.

  Zeran brought a negligence suit against AOL, seeking to hold AOL

liable for the defamatory speech initiated by the third party. The Tenth

Circuit affirmed dismissal of Zeran's complaint, holding "§ 230 forbids

the imposition of publisher liability on a service provider for the

exercise of its editorial and self-regulatory functions." /12

  We find no case addressing application of the statute to interactive web

site operators. /13  But Amazon's web site postings appear

indistinguishable from AOL's message board for § 230 purposes. Schneider

points out that web site operators do not provide access to the Internet,

but this is irrelevant. Under the statutory definition, access providers

are only a subclass of the broader definition of interactive service

providers entitled to immunity ("provides or enables computer access by

multiple users to a computer server, including specifically a service . .

. that provides access" /14). According to Schneider's complaint, Amazon's

web site enables visitors to the site to comment about authors and their

work, thus providing an information service that necessarily enables

access by multiple users to a server. This brings Amazon squarely within

the definition.

  Our holding derives from the plain language of the statute. It is

supported by legislative history and by findings and policy statement in

the statute:

  (a) Findings

  The Congress finds the following:

    (1) The rapidly developing array of Internet and other

    interactive computer services available to individual

    Americans represent an extraordinary advance in the

    availability of educational and informational resources to

    our citizens.

    (2) These services offer users a great degree of control

    over the information that they receive, as well as the

    potential for even greater control in the future as

    technology develops.

    (3) The Internet and other interactive computer services

    offer a forum for a true diversity of political discourse,

    unique opportunities for cultural development, and myriad

    avenues for intellectual activity.

    (4) The Internet and other interactive computer services

    have flourished, to the benefit of all Americans, with a

    minimum of government regulation.

    (5) Increasingly Americans are relying on interactive

    media for a variety of political, educational, cultural,

    and entertainment services.

  (b) It is the policy of the United States-

    (1) to promote the continued development of the Internet

    and other interactive computer services and other

    interactive media;

    (2) to preserve the vibrant and competitive free market

    that presently exists for the Internet and other

    interactive computer services, unfettered by Federal or

    State regulation;

    (3) to encourage the development of technologies which

    maximize user control over what information is received by

    individuals, families, and schools who use the Internet

    and other interactive computer services;

    (4) to remove disincentives for the development and

    utilization of blocking and filtering technologies that

    empower parents to restrict their children's access to

    objectionable or inappropriate online material; and

    (5) to ensure vigorous enforcement of Federal criminal

    laws to deter and punish trafficking in obscenity,

    stalking, and harassment by means of computer. /15



  Congress passed § 230 "to remove disincentives to self-regulation"

created by a New York state court decision holding an ISP strictly liable

for unidentified third parties' defamatory comments posted on its

bulletin board. /16  As the Tenth Circuit explained in Zeran,

Congress deliberately chose not to deter harmful online speech by means

of civil liability on "companies that serve as intermediaries for other

parties' potentially injurious messages." /17  Congress intended to

encourage self-regulation, /18  and immunity is the form of that

encouragement. We can discern no difference between web site operators

and ISPs in the degree to which immunity will encourage editorial

decisions that will reduce the volume of offensive material on the

Internet.

  Under the plain language of the statute, Amazon is a provider of

interactive computer services for purposes of § 230(f)(2).



2. Schneider's Claims Treat Amazon as a Publisher

  The next question is whether Schneider's complaint treats Amazon as a

publisher. Section 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." /19  Publication

includes "the failure to remove [content] . . . when first communicated by

another party." /20  In his amended complaint, Schneider alleged that

"Amazon.com exercises editorial discretion and decision-making authority

over the posting of comments at its site." /21 Schneider's complaint thus

treats Amazon as a publisher.

  Schneider argues, however, that the statute bars only tort claims,

and that his claims sound in contract, not tort. Schneider asserts he

"does not seek to hold Amazon liable for initially posting the defamatory

comments and reviews submitted by third parties-he seeks to recover the

damages which flowed from Amazon's misrepresentations and breach [of] its

agreement following the postings," /22  because Amazon promised to remove

the offensive posting, failed to do so, and reposted the reviews rather

than deleting them.

  We reject this analysis. First, assuming Schneider could prove

existence of an enforceable promise to remove the comments, Schneider's

claim is based entirely on the purported breach-failure to remove the

posting-which is an exercise of editorial discretion. This is the

activity the statute seeks to protect. More important, however, is the

fact that § 230 does not limit its grant of immunity to tort claims: "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." /23  Were the

statute not clear enough, legislative history demonstrates Congress

intended to extend immunity to all civil claims: "This section provides

`Good Samaritan' protections from civil liability for providers

or users of an interactive computer service for actions to restrict or to

enable restriction of access to objectionable online material." /24

Schneider's argument rests mainly upon his reading of the Fourth

Circuit's opinion in Zeran, but that court did not discuss

application of the statute to contract claims, and cannot be fairly read

as implying, much less holding, that § 230 immunity is limited to tort

claims. Finally, courts that have considered the question have held §

230 provides immunity to civil claims generally. /25

  Schneider's amended complaint treats Amazon as a publisher within

the scope of § 230.



3. Amazon Is Not the Information Content Provider

  Immunity extends only when the content is not provided by the service

entity: "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." /26  An information content provider is

"any person or entity that is responsible, in whole or in part, for the

creation or development of information provided through the Internet or

any other interactive computer service." /27

  Schneider does not claim Amazon created the information about him.

Rather, he argues that because Amazon had the right to edit the posting,

and because Amazon claims licensing rights in the posted material, /28

Amazon in effect became the content provider.

  Both of Schneider's arguments have been rejected. In Ben Ezra,

Weinstein, and Co. v. America Online, Inc. /29  the Tenth Circuit

considered whether AOL's editing of content rendered it an information

content provider. AOL provided access to allegedly inaccurate

information regarding Ben Ezra's publicly-traded stock. The information

came from an independent stock quote provider and a software provider.

AOL deleted and altered some of the information, and Ben Ezra alleged

that AOL worked so closely with the independent parties in creating and

developing the information that AOL was an information content provider.

The Tenth Circuit disagreed: "By deleting the allegedly inaccurate stock

quotation information, Defendant was simply engaging in the editorial

functions Congress sought to protect." /30

  We agree with the circuit court's analysis. And if actual editing

does not create liability, the mere right to edit can hardly do so;

Schneider does not allege Amazon actually altered or edited the comments.

  Schneider's licensing rights argument was rejected in Blumenthal

v. Drudge. /31  Blumenthal sued Drudge and AOL for allegedly

defamatory statements made by Drudge in an electronic publication

available to AOL subscribers under a licensing agreement. The licensing

agreement provided that Drudge would "create, edit, update, and otherwise

manage the content of the publication," and AOL could "remove content

that AOL reasonably determine[s] to violate AOL's then standard terms of

service." /32  Drudge emailed each new edition to AOL, who then made it

available to AOL subscribers. The Blumenthal court held the

statute mandates immunity:

  Congress has made a different policy choice by providing

  immunity even where the interactive service provider has an

  active, even aggressive role in making available content

  prepared by others. In some sort of quid pro quo

  arrangement with the service provider community, Congress has

  conferred immunity from tort liability as an incentive to

  Internet service providers to self-police the Internet for

  obscenity and other offensive material, even where the self-

  policing is unsuccessful or not even attempted. /33



  We agree with the Blumenthal court as to the scope of the

protection granted by § 230. Schneider attempts to distinguish

Blumenthal, arguing Amazon's licensing rights are "significantly

broader and deeper than AOL's" licensing rights. /34  But this is

irrelevant. There is no allegation that Amazon was responsible for

creating or developing the negative comments. Amazon was not a content

provider under the allegations in Schneider's complaint.

  Because all three elements for § 230 immunity are satisfied, the

trial court properly concluded § 230 bars Schneider's claims against

Amazon. /35

  Affirmed.



  BECKER, A.C.J., and KENNEDY, J., concur.



_______________

  1 Clerk's Papers at 59.

  2 Clerk's Papers at 59.



  3 Clerk's Papers at 28.



  4 Reid v. Pierce County, 136 Wn.2d 195, 200-01, 961 P.2d

333 (1998).



  5 Reid, 136 Wn.2d at 200-01.



  6 Postema v. Pollution Control Hearings Bd., 142 Wn.2d 68,

122, 11 P.3d 726 (2000).



  7 Rodriguez v. Perez, 99 Wn. App. 439, 442, 994 P.2d 874,

review denied, 141 Wn.2d 1020 (2000).



  8 Zeran v. Am. Online, Inc., 129 F.3d 327, 330 (4th Cir.

1997), cert. denied, 524 U.S. 937 (1998).



  9 47 U.S.C. § 230(c)(1), (2) (emphasis added).



  10 47 U.S.C. § 230(f)(2).



  11 129 F.3d 327 (4th Cir. 1997).



  12 Zeran, 129 F.3d at 331.



  13 In the only § 230 immunity decision we find involving a web site

operator, eBay's status as an interactive computer service provider was

not disputed. See Stoner v. eBay, Inc., 2000 WL 1705637, at *1

(Cal. Super. 2000) (unpublished).



  14 47 U.S.C. § 230(f)(2).



  15 47 U.S.C. § 230(a)-(b).



  16 Zeran, 129 F.3d at 331 (discussing Stratton Oakmont,

Inc. v. Prodigy Servs. Co., 1995 WL 323710 (N.Y.Sup.Ct. May 24,

1995)).



  17 Zeran, 129 F.3d at 330-31.



  18 Zeran, 129 F.3d at 331.



  19 Zeran, 129 F.3d at 330.



  20 Zeran, 129 F.3d at 332.



  21 Clerk's Papers at 29.



  22 App. Br. at 17-18.



  23 47 U.S.C. § 230(e)(3).



  24 142 Cong. Rec. H1078-03, 1103 (1996).



  25 See Kathleen R. v. City of Livermore, 104 Cal.Rptr.2d 772,

780-81 (Cal. App. 2001) (rejecting argument that § 230 immunity was

limited to tort claims, holding immunity extends to a taxpayer's action

for declaratory and injunctive relief); see also Jane Doe One v.

Oliver, 755 A.2d 1000,1003-04 (Conn. Sup. Ct. 2000) (§ 230 immunity

grounds for dismissal of breach of contract claim against AOL).



  26 47 U.S.C. § 230(c)(1).



  27 47 U.S.C. § 230(f)(3). In an unpublished decision, one court

refused to characterize web site hosts (entities that provide space on

their servers to third parties for building web sites) as "information

content providers." See Does v. Franco Prod., 2000 WL

816779, at *4-5 (N.D. Ill. 2000).



  28 Amazon advises potential book reviewers:

    Amazon.com enables visitors to its site to post reviews of

  and comments on products featured on the site. If you post

  reviews or comments on the site, you grant Amazon.com and its

  affiliates a non-exclusive, royalty-free, perpetual,

  irrevocable, and fully sublicensable right to use, reproduce,

  modify, adapt, publish, translate, create derivative works

  from, distribute, and display such reviews and comments

  throughout the world in any media.  You also grant

  Amazon.com and its affiliates and the sublicensees the right to

  use the name that you submit with any review or comment, if

  any, in connection with such review or comment.



Clerk's Papers at 59-60.



  29 206 F.3d 980 (10th Cir.), cert denied, 531 U.S. 824

(2000).



  30 Ben Ezra, 206 F.3d at 986.



  31 992 F. Supp. 44 (D.D.C. 1998).



  32 Blumenthal, 992 F. Supp. at 47 (internal quotations

omitted).



  33 Blumenthal, 992 F. Supp. at 52.



  34 App. Br. at 20.



  35 Schneider claims the trial court erred in failing to permit

reconsideration and the filing of a third amended complaint, for purposes

of pleading foreign law. Schneider cited no authority and devoted no

argument to this issue in his brief, merely asserting that "Amazon is not

shielded by the Consumer Decency Act in Canada . . . [or] the United

Kingdom." App. Br. at 22. We therefore decline to consider this issue.

See RAP 10.3(a)(5); Mannington Carpets, Inc. v.

Hazelrigg, 94 Wn. App. 899, 910, 973 P.2d 1103 (1999) (refusing to

review denial of motion for reconsideration where appellant failed to

present authority or argument in support of claim). We also reject

Schneider's reply brief, which was due Nov. 26, 2000 but was filed April

17, 2001, three days before oral argument. See RAP 10.2(d).

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