YouTube has filed a motion to dismiss a lawsuit brought against it by Ripple, a blockchain startup. Once again, the video-sharing platform is using Section 230 of the Communications Decency Act as its defense, which prevents it from being liable from the actions of its users.
Ripple and its CEO Brad Garlinghouse sued YouTube in April over a cryptocurrency scam. According to the crypto startup, YouTube failed to stop scammers from posting fraudulent crypto giveaway videos that used the likeness of the CEO.
At the time of filing the suit, the company said, “Ripple and Mr Garlinghouse have suffered—and continue to suffer—irreparable harm to their public image, brand, and reputation as a direct consequence of YouTube's deliberate and inexplicable failure to address a pervasive and injurious fraud occurring on its platform.”
The scam tricked people into sending their crypto, believing they would receive more after some time.
In April, YouTube released a statement saying that it takes abuse of the platform seriously and quickly takes action when it detects violations of its policies, including scams or impersonation.
On Monday, July 20, YouTube filed a motion to dismiss. YouTube argued that under Section 230 of the Communications Decency Act, it is protected from content posted by users.
“Plaintiffs' state-law claims are barred by Section 230 of the CDA, 47 USC. § 230 (“Section 230”), and all their claims fail of their own accord,” read part of YouTube's motion.
The video-sharing platform also reminded the court that it did not “orchestrate or participate in that scam, and after being notified about fraudulent content posted by the hijacked accounts, YouTube removed it.”
The motion will continue on August 27.
YouTube is also facing a similar lawsuit, filed by Apple co-founder Steve Wozniak and 17 other people. The tech entrepreneur is suing YouTube for allowing scammers to use his likeness to defraud users.
In the suit, Wozniak claimed that the scammers were posting videos claiming that he was hosting a crypto promotion. Unsuspecting users send crypto to a certain address hoping that Wozniak would send back double the amount.