The opinion was hailed by one observer as a "rare defeat for a consumer protection agency"[2] and the "biggest defense win of the year"[3] in CDA § 230 litigation.
TicketNetwork also guaranteed buyers on its Exchange a row and seat equal or better to the one purchased, and offered a full reimbursement if the tickets did not arrive in time or were not valid.
Following the investigation, Attorney General Anne Milgram filed suit against five online ticket resellers for violations of New Jersey's Consumer Fraud Act[7] and the state's Advertising Regulations.
"[9] Two of the resellers settled out-of-court, but Orbitz and TicketNetwork moved to dismiss the state's complaint, claiming immunity under a provision of the Communications Decency Act of 1996.
The court began its discussion of this issue with a reminder that, although CDA immunity is most often used to preempt defamation claims, it has also been applied to a variety of other causes of action including housing anti-discrimination laws and negligent publication of advertisements.
Yahoo!, and quoted the Ninth Circuit court's explanation that the CDA covers "any activity that can be boiled down to deciding whether to exclude material that third parties seek to post online.
"[12] The court went on to cite Donato v. Moldow, a New Jersey appellate decision holding that the CDA's language was intended to "promote the development of e-commerce" and prevent websites from being taken down by litigation.
[13] In Carafano, the defendant operated a dating website that required users to fill in a standard form, including several multiple-choice questions, in order to complete their profiles.
The court distinguished Fair Housing Council of San Fernando Valley v. Roommates.com, LLC,[15] a case in which the defendant service was denied CDA § 230 immunity because it was "actively participating in the objectionable content" by requiring users to provide certain information in violation of a state anti-discrimination statute in order to register.
"[1] The court granted the defendants' motions for summary judgment, finding that they "help to create and maintain a vibrant, competitive, market" for consumers of travel and concert tickets shopping online, consistent with Congress's intent in enacting § 230 of the CDA.