Gentry v. eBay, Inc.

121 Cal. Rptr. 2d 703, 99 Cal. App. 4th 816, 2002 Cal. Daily Op. Serv. 5727, 2002 Daily Journal DAR 7218, 2002 Cal. App. LEXIS 4329
CourtCalifornia Court of Appeal
DecidedJune 26, 2002
DocketD037661
StatusPublished
Cited by95 cases

This text of 121 Cal. Rptr. 2d 703 (Gentry v. eBay, Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gentry v. eBay, Inc., 121 Cal. Rptr. 2d 703, 99 Cal. App. 4th 816, 2002 Cal. Daily Op. Serv. 5727, 2002 Daily Journal DAR 7218, 2002 Cal. App. LEXIS 4329 (Cal. Ct. App. 2002).

Opinion

Opinion

O'ROURKE, J.

Lars Gentry, Henry Camp, Mike Hyder, James Conboy, William Pommerening, and Michael Osacky (appellants) appeal a judgment *820 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 on-line marketplace for the sale of goods and services among its registered users. 1 It operates an Internet-based service in which it enables member sellers to offer items for *821 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 Sports-card, 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. 2

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, *822 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 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 10 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.

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Cite This Page — Counsel Stack

Bluebook (online)
121 Cal. Rptr. 2d 703, 99 Cal. App. 4th 816, 2002 Cal. Daily Op. Serv. 5727, 2002 Daily Journal DAR 7218, 2002 Cal. App. LEXIS 4329, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gentry-v-ebay-inc-calctapp-2002.