Judge dismisses EPA lawsuit against eBay

By Ellie Borst | 10/02/2024 01:31 PM EDT

The online retail giant is not required to remove products listed by third parties in violation of environmental laws, a judge ruled.

SAN JOSE, CALIFORNIA - JANUARY 24: A sign is posted in front of eBay headquarters on January 24, 2024 in San Jose, California. eBay announced plans to lay off 1,000 jobs, an estimated 9 percent of their workforce. (Photo by Justin Sullivan/Getty Images)

A sign is posted in front of eBay headquarters on Jan. 24 in San Jose, California. Justin Sullivan/Getty Images

A federal district judge dismissed the Biden administration’s lawsuit over eBay products violating three key environmental laws, offering judgment on liability involving third-party sellers.

A Monday order out of the U.S. District Court for the Eastern District of New York rejected the Department of Justice’s lawsuit, filed on EPA’s behalf, arguing the online retailer should be on the hook for billions of dollars in fines over 370,000 product listings not up to snuff with federal air, pesticides and toxics laws.

EBay’s status is “clearly” as a computer service, not as a seller or distributor, wrote Judge Orelia Merchant, a Biden appointee.

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Independent, third-party sellers allegedly listed at least 343,011 automobile products designed specifically to evade emission controls regulated under the Clean Air Act, with each violation subject to a fine up to $5,580. Merchant freed eBay from liability on the basis that eBay never owns or possesses the products, and the air statute only prohibits sales.

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