Legal action was taken against the company on the grounds that
its hosting of the sale of the recordings constituted a breach of a
code on unfair business practices and that the company should have
alerted users of its service that the recordings may have been
illegal.
However, Judge Stuart Pollak ruled that eBay is immune from
liability for such an action under the US Communications Decency
Act which says that an interactive computer service cannot be
treated as the publisher of information provided by another content
provider.
According to a report in Law.com, an appeal is being considered
on the grounds that the legislation is not applicable to an on-line
auction house.
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