Nemet Chevrolet, Ltd. v. Consumeraffairs. Com, Inc.

591 F.3d 250, 38 Media L. Rep. (BNA) 1065, 49 Communications Reg. (P&F) 134, 2009 U.S. App. LEXIS 28539, 2009 WL 5126224
CourtCourt of Appeals for the Fourth Circuit
DecidedDecember 29, 2009
Docket08-2097
StatusPublished
Cited by1,597 cases

This text of 591 F.3d 250 (Nemet Chevrolet, Ltd. v. Consumeraffairs. Com, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nemet Chevrolet, Ltd. v. Consumeraffairs. Com, Inc., 591 F.3d 250, 38 Media L. Rep. (BNA) 1065, 49 Communications Reg. (P&F) 134, 2009 U.S. App. LEXIS 28539, 2009 WL 5126224 (4th Cir. 2009).

Opinions

Affirmed by published opinion. Judge AGEE wrote the majority opinion, in which Judge KING joined. Judge JONES wrote a separate opinion concurring in part and dissenting in part.

OPINION

AGEE, Circuit Judge:

Consumeraffairs.com, Incorporated (“Consumeraffairs.com”) operates a website that allows consumers to comment on the quality of businesses, goods, and services. The present suit concerns various posts on this website relating to automobiles sold or serviced by Nemet Chevrolet, Ltd. (“Nemet”). Viewing certain of these postings as false and harmful to its reputation, Nemet brought suit against Consumeraffairs.com in the United States District Court for the Eastern District of Virginia for defamation and tortious interference with a business expectancy.1 Consumeraffairs.com moved to dismiss these claims, under Rule 12(b)(6) of the Federal Rules of Civil Procedure, as barred by § 230 of the Communications Decency Act of 1996 (“CDA”), which precludes plaintiffs from holding interactive computer service providers liable for the publication of information created and developed by others.2 [253]*253See 47 U.S.C. § 230(c)(1), (e)(3), & (f)(3); Zeran v. Am. Online, Inc., 129 F.3d 327, 330 (4th Cir.1997).

The district court granted the Rule 12(b)(6) motion, but gave Nemet permission to file an amended complaint. Upon filing of the amended complaint, Consumeraffairs.com again filed a Rule 12(b)(6) motion to dismiss based on § 230 of the CDA. The district court granted the motion to dismiss, stating that “the allegations contained in the Amended Complaint [d]o not sufficiently set forth a claim asserting that [Consumeraffairs.com] authored the content at issue. Furthermore, the allegations are insufficient to take this matter outside of the protection of the Communications Decency Act.” Joint Appendix (“J.A.”) at 303.

Nemet timely appealed the judgment of the district court and we have jurisdiction under 28 U.S.C. § 1291. For the reasons that follow, we affirm the judgment of the district court.3

I.

Nemet’s claims, as pled in its amended complaint, are based on twenty specific posts on the Consumeraffairs.com website. As to these twenty posts, Nemet argues its pleading was sufficient to withstand a Rule 12(b)(6) motion because the facts pled, viewed under the proper standard at this stage of the proceeding, show that Consumeraffairs.com was an “information content provider” under § 230(f)(3) of the CDA and, therefore, not entitled to CDA immunity. Further, Nemet contends that because its factual allegations are sufficient to negate the immunity bar claimed by Consumeraffairs.com, it should be entitled to discovery before any ruling on immunity would be appropriate as, for instance, under Rule 56 for summary judgment.

Before we discuss the specific language Nemet relies upon from its amended complaint, it is appropriate to briefly set forth the standard of review, the statutory and case-law parameters of immunity under the CDA, and the clarification of pleading standards recently addressed by the Supreme Court in Ashcroft v. Iqbal, — U.S. -, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009).

II.

Our review of the district court’s ruling on a motion to dismiss is de novo. See Novell, Inc. v. Microsoft Corp., 505 F.3d 302, 307 (4th Cir.2007). “Because the district court granted Defendants’ motion to dismiss, our review is de novo. Like the district court, we must assume all [well-pled facts] to be true.” Trulock v. Freeh, 275 F.3d 391, 399 (4th Cir.2001) (quotations and emphasis omitted). We also, like the district court, draw all reasonable inferences in favor of the plaintiff. See Edwards v. City of Goldsboro, 178 F.3d 231, 244 (4th Cir.1999). “[B]ut we need not accept the legal conclusions drawn from the facts, and we need not accept as true unwarranted inferences, unreasonable conclusions or arguments.” Giarratano v. Johnson, 521 F.3d 298, 302 (4th Cir.2008) (quotations omitted).

[254]*254III.

Recognizing that the Internet provided a valuable and increasingly utilized source of information for citizens, Congress carved out a sphere of immunity from state lawsuits for providers of interactive computer services to preserve the “vibrant and competitive free market” of ideas on the Internet. 47 U.S.C. § 230(b)(2); see also Zeran, 129 F.3d at 330. The CDA bars the institution of a “cause of action” or imposition of “liability” under “any State or local law that is inconsistent” with the terms of § 230. 47 U.S.C. § 230(e)(3). As relevant here, § 230 prohibits a “provider or user of an interactive computer service” from being held responsible “as the publisher or speaker of any information provided by another information content provider.” Id. § 230(c)(1). Assuming a person meets the statutory definition of an “interactive computer service provider,” the scope of § 230 immunity turns on whether that person’s actions also make it an “information content provider.” The CDA defines an “information content provider” as “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.” Id. § 230(f)(3).

Taken together, these provisions bar state-law plaintiffs from holding interactive computer service providers legally responsible for information created and developed by third parties. See Fair Hous. Council v. Roommates.com, LLC, 521 F.3d 1157, 1162 (9th Cir.2008) (en banc). Congress thus established a general rule that providers of interactive computer services are liable only for speech that is properly attributable to them. See Universal Commc’n Sys., Inc. v. Lycos, Inc., 478 F.3d 413, 419 (1st Cir.2007). State-law plaintiffs may hold liable the person who creates or develops unlawful content, but not the interactive computer service provider who merely enables that content to be posted online. See Doe v. MySpace, Inc., 528 F.3d 413, 419 (5th Cir.2008); Chicago Lawyers’ Comm. for Civil Rights Under Law, Inc. v. Craigslist, Inc., 519 F.3d 666, 672 (7th Cir.2008); Zeran, 129 F.3d at 330-31.

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591 F.3d 250, 38 Media L. Rep. (BNA) 1065, 49 Communications Reg. (P&F) 134, 2009 U.S. App. LEXIS 28539, 2009 WL 5126224, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nemet-chevrolet-ltd-v-consumeraffairs-com-inc-ca4-2009.