When you run a roommate-matching service, you need to be careful about
what questions you ask, as Roommates.com has just learned the hard way.
The Ninth Circuit Court of Appeals recently ruled
(PDF) that the service did not qualify for a Safe Harbor under Section
230 of the Communications Decency Act (CDA), bucking the trend of courts finding online entities to be generally immune from their users' actions. The case now goes back to
a lower court, where Roommates.com could well be on the hook for
violating the Fair Housing Act-all because of a couple questions.
The CDA contains a Safe Harbor which indicates that online service providers are not
generally liable for the infringing or illicit content posted by their
users, so long as the service providers are simply offering a set of
tools. Once they get involved in shaping the content, though, they can
lose this protection.
That's what happened to Roommates.com, which was sued by the Fair
Housing Councils of San Fernando Valley and San Diego on the grounds
that it was helping landlords to discriminate against certain kinds of
tenants. Two separate sections of the registration process were brought
into question in court: the first involved questions about the user's
gender, sexual orientation, and number of children. By asking these
questions, was Roommates.com shedding its Section 230 Safe Harbor and
getting involved in the creation of content?
The Court said yes. Though it refused to rule on whether
Roommates.com actually violated the Fair Housing Act, the Court did
find that it lost Section 230 immunity because it required users to
enter that information in order to proceed. As Judge Alex Kozinski put
it in his opinion, "if it is responsible, in whole or in part, for
creating or developing the information, it becomes a content provider
and is not entitled to CDA immunity."
In addition to providing users with questions about gender, sexual orientation and number of children, Roommates.com
allowed users to search for potential roommates with profiles
compatible with their preferences. E-mail notifications sent by
Roommates.com with potential matches were also filtered by Roommate.com
to exclude incompatible users.
The court held that the combination of Roommates.com questions and
prompts along with how Roommates.com categorized and channeled
submitted information made Roommates.com responsible, at least in part,
for creating or developing the content that formed the basis of the
plaintiffs' FHA claim.
According to the court, "by categorizing, channeling and limiting
the distribution of users profiles, Roommates.com provides an
additional layer of information that it is responsible at least in part
for developing."
The court also compared Roommates.com to a hypothetical site that
provided: "a forum designed to publish sensitive and defamatory
information, and suggested the type of information that might be
disclosed to best harass and endanger the targets".
The Ninth Circuit remanded the case to the district court for a determination of whether Roommates.com violated the Fair Housing Act.
The lesson for website owners that accept user content? How much of your users' content is "free-form," and how much of it is shaped by the prompts, questions, and functionality of your website? Not sure? Contact us for an evaluation of your website.