Donald Trump

The Fifth Circuit On Section 230 Immunity: Any Cloud n’ Hosting Provider is Liable for Customer’s Content

Salesforce is being sued by sex trafficking victims in Texas, who allege the company aided trafficking by providing SAAS to Backpage.com.

LIT COMMENTARY & ANALYSIS

Dec 20, 2024
 REPUBLISHED BY LIT: DEC. 20, 2024

What the Courts Had to Consider in this Salesforce Liability Case

The situation—Salesforce providing SaaS services to a defunct platform like Backpage.com—raises complex questions about the potential liability of SaaS providers under Section 230 and whether they could be held accountable for the content or activities of a platform like Backpage.

Key Considerations

Backpage.com and Its Legal Issues

Backpage.com was a classified ads website that was widely criticized for facilitating illegal activities, particularly sex trafficking, through its adult services section.

In 2018, Backpage was seized by the U.S. government, and several of its executives were charged with various criminal offenses related to human trafficking and prostitution.

The legal issues surrounding Backpage stemmed from accusations that the platform knowingly facilitated illegal activity.

In 2018, Section 230 protections were effectively removed for certain types of platforms like Backpage due to the Fight Online Sex Trafficking Act (FOSTA) and the Stop Enabling Sex Traffickers Act (SESTA), which made platforms liable for knowingly enabling sex trafficking, even if they were not directly involved in creating the content.

Salesforce’s Role

Salesforce, as a SaaS provider, is primarily a CRM (customer relationship management) platform.

It offers tools for managing customer interactions, marketing, sales, and data analysis.

It’s not typically associated with hosting user-generated content in the way social media platforms or classified ad websites like Backpage are.

If Salesforce was simply providing CRM or other SaaS services to Backpage, it would have been providing tools to manage customer data, sales, or marketing—not hosting or publishing user-generated content like Backpage did.

Section 230 Immunity vs. FOSTA-SESTA

Section 230 traditionally offers immunity to online platforms for content generated by users.

However, FOSTA-SESTA (signed into law in 2018) carved out exceptions to Section 230 immunity for cases involving sex trafficking and child exploitation, which could significantly impact a platform like Backpage.

Under FOSTA, platforms that knowingly facilitate or promote illegal sex trafficking can lose Section 230 protection.

This means that Backpage.com, which was accused of facilitating sex trafficking, could be held liable for the illegal activity of its users.
However, SaaS providers like Salesforce might not be directly responsible for Backpage’s actions, as they generally don’t control or moderate content in the way that a platform like Backpage does.

The key issue would be whether Salesforce knew or had reason to know that its services were being used to facilitate illegal activity (such as sex trafficking), which could expose it to potential liability.

Would Salesforce Be Liable?

The question of whether Salesforce could be held liable depends on several factors:

Knowledge of Illegal Activity:

If Salesforce had actual knowledge or was willfully blind to the fact that its services were being used to facilitate illegal activities like sex trafficking, it might face legal risks under FOSTA-SESTA. The law removes Section 230 immunity for platforms that knowingly assist in illegal activity, so if Salesforce had direct knowledge that Backpage was using its tools for illegal purposes, it could be seen as complicit.

Type of Service Provided:

If Salesforce was merely providing its CRM software to Backpage to manage customer relationships (without any involvement in the platform’s content), the SaaS provider would be less likely to face liability, assuming it wasn’t directly involved in facilitating illegal activity. However, the more Salesforce knew about the illicit uses of its services, the more it could potentially face scrutiny.

Legal Precedents:

Historically, SaaS providers are not held liable for the illegal actions of their customers unless they are actively involved in or aware of the illegal activities. If Salesforce simply provided generic software tools to Backpage, it could argue that it was not directly involved in the activities that led to Backpage’s legal troubles.

However, FOSTA-SESTA changes the calculus by specifically targeting platforms that enable sex trafficking, so the legal risk for Salesforce in this case would depend heavily on the degree of awareness it had about Backpage’s operations.

Conclusion

In the case of Salesforce providing SaaS services to Backpage, the key issue would be knowledge and involvement in illegal activities, not just providing generic software.

Under Section 230, Salesforce would typically be shielded from liability for content generated by Backpage users.

However, under FOSTA-SESTA, if Salesforce had knowledge or should have known that its services were being used for illegal purposes (like sex trafficking), it could face legal exposure, despite the protections of Section 230.

Thus, while Salesforce might not be automatically liable for hosting user-generated content like social media platforms, it could still face legal challenges if it was found to have been complicit in facilitating illegal activity, particularly with the passage of laws like FOSTA-SESTA.

LIT’s Concerns About the Fifth Circuit’s Opinion

The Salesforce decision—while it centers on a very specific set of facts involving Backpage and sex trafficking—raises serious implications for the broader landscape of web hosts, service providers, and even small publishers who rely on third-party infrastructure for hosting and other services.

The ruling, especially in its narrow focus on Section 230 immunity and ignoring the FOSTA-SESTA carve-out, could indeed have unintended consequences for companies that sell hosting services or provide back-office infrastructure to online platforms.

Key Concerns and Potential Impacts

Moderation Responsibilities of Hosts

The Salesforce decision suggests that third-party service providers (like Salesforce, web hosts, or SaaS providers) could potentially be liable for content that is hosted or transmitted through their infrastructure.

If they are seen as providing back-office business services to a company involved in illegal activities (such as sex trafficking), they might be held accountable—regardless of whether they are acting as publishers or speakers of the content.

The implication here is that service providers might feel pressure to moderate or restrict content proactively to avoid liability, even if they are not directly involved in content creation or publication.

This puts them in a position where they may need to police their customers’ activities, potentially leading to over-censorship or an inability to support certain types of businesses that rely on user-generated content.

Small Publishers and Entrepreneurs

For small publishers, particularly those who run niche websites or small-scale platforms, the reliance on third-party hosting services like Salesforce, AWS, or other cloud providers is a practical necessity.

These smaller businesses may not have the resources to build their own infrastructure.

The Salesforce decision could expose them to greater risk because they would now have to worry about whether the third-party service providers they depend on will overreact by cutting off services if there is concern about legal exposure, even if they aren’t directly involved in any illegal content.

Small businesses could face increased costs and difficulties in finding providers willing to offer hosting or back-office services.

If service providers become too cautious or risk-averse, smaller publishers might struggle to find partners willing to provide them with the necessary tools and infrastructure to run their sites.

Risk of Over-Censorship

The decision could lead to a chilling effect where web hosts or service providers feel obligated to take more aggressive steps to monitor, filter, or remove content, even if they are not involved in its creation or publication.

In an environment where the legal risks of facilitating or hosting illegal content are amplified, these service providers might choose to err on the side of caution by shutting down or restricting services to publishers who may be at risk of being linked to problematic content, even tangentially.

This could result in over-censorship, where even perfectly legitimate content is removed or restricted because service providers fear legal consequences, further limiting the freedom of smaller publishers or businesses.

Redefining Service Providers’ Roles

A crucial issue here is how this decision could redefine the role of service providers like Salesforce and web hosts.

In theory, these companies are just providing infrastructure—servers, cloud computing, storage, and so on—without being involved in the content users upload.

But the Salesforce decision opens the door to the argument that these providers may need to police user content more rigorously.

This could fundamentally change the relationship between service providers and their customers.

If FOSTA-SESTA exceptions to Section 230 are not applied consistently, this means service providers may need to take a more active role in monitoring content for potential illegal activity, even if it’s not something they are involved in directly.

For example, if a small publisher is hosting content or providing a platform for users, the hosting company may now face legal risks if the publisher’s content is linked to something illegal (like trafficking) even indirectly.

Legal Liability and Economic Burdens

This situation could create a disincentive for service providers to offer affordable, flexible, and diverse services.

As companies like Salesforce or hosting providers are exposed to increased legal liability, they may seek to restrict services, raise prices, or impose burdensome terms on smaller companies and publishers.

Smaller social media companies or publishers that operate in niche areas could find it more difficult to find service providers willing to work with them.

This could create a disproportionate burden on small publishers who are already operating with limited resources, limiting innovation and diversity on the internet.

Why This Decision Is Extremely Troubling for Web Hosts and Small Publishers

While LIT recognizes that what Backpage did was abhorrent and inexcusable, this opinion has far-reaching consequences for all web hosts and small publishers who rely on third-party hosting to publish content online.

In light of the 5th Circuit’s ruling, this decision could hold these hosts liable simply for providing hosting services to a publisher or blogger, effectively forcing them to moderate all content hosted on their servers.

This is not only nonsensical, but it also fails the common-sense test. New, separate legislation—specifically FOSTA-SESTA—was enacted to address these very issues. As such, LIT concludes that this opinion is, without a doubt, an example of judicial activism.

The Salesforce decision casts a shadow on the future of web hosts, SaaS providers, cloud infrastructure companies, and even small publishers who rely on third-party hosting.

By not engaging with the FOSTA-SESTA carve-out, the decision creates confusion about whether platforms, service providers, and even hosting companies could be exposed to liability for hosting or facilitating content that might indirectly contribute to illegal activities (like sex trafficking).

For the broader digital ecosystem, this creates a perverse incentive for service providers to over-police their customers’ activities, potentially leading to over-censorship, higher costs, and fewer choices for small publishers.

It could also disproportionately affect platforms that operate in niche sectors or smaller social media companies that rely on third-party services for hosting or other infrastructure needs.

In essence, while Salesforce’s involvement with Backpage might justify some legal scrutiny in this specific case, the implications of this decision extend far beyond Salesforce, and could create a ripple effect that harms the broader ecosystem of service providers and small-scale publishers who are trying to operate in a legally complex and ever-changing online landscape.

A. B. v. Salesforce (Published)

Fifth Circuit
23-20604

Dec 19, 2024
 REPUBLISHED BY LIT: DEC. 20, 2024

LIT: OneDrive, Google Drive, Dropbox, and web hosts (to name only a few) are all now at risk.

Before Judge Willett, Judge Douglas, Circuit Judges, and Judge Morales, District Judge.*

* United States District Judge for the Southern District of Texas, sitting by designation.

David S. Morales, District Judge:

This interlocutory appeal centers around section 230 of the Communications Decency Act.

Plaintiffs, a group of sex-trafficking victims, were trafficked through advertisements posted on Backpage.com, an online advertisement forum.

They sued Salesforce, a company that provided cloud-based software tools and related support services to Backpage.

Salesforce moved for summary judgment on the grounds that section 230 bars Plaintiffs’ claims.

Because Plaintiffs’ claims do not treat Salesforce as the publisher or speaker of third-party content, Salesforce cannot avail itself of section 230’s grant of immunity.

Accordingly, we AFFIRM the district court’s denial of summary judgment and REMAND for further proceedings consistent with this opinion.

I

Salesforce is a business-software company that provides cloud-based customer-relationship-management (“CRM”) technology.

Unlike traditional CRM technology, Salesforce’s software allows businesses to dispense with rolodexes,1 physical files, CDs, or local databases and instead organize their customer data on Salesforce’s servers. All types of businesses use this software, and Salesforce is the world’s largest CRM-software provider.

Backpage was a Craigslist-style online advertisement forum.

But it did not just provide a forum for advertising the sale of your couch before a big move—the website also included advertisements for erotic dancers and escort services.

In fact, during a 2017 Senate investigation, Backpage did not deny that its site was used for criminal activity, including the sale of children for sex.

That investigation eventually found that Backpage knowingly facilitated both prostitution and child sex trafficking, and had concealed evidence of criminal activity on its platform. Ultimately, the Department of Justice seized Backpage, and in 2018, Backpage pled guilty to human trafficking.

1 “Rolodex” is a genericized portmanteau referring to a desktop card index used to record names, addresses, and telephone numbers.

Sometime in 2012 or 2013, Backpage contacted Salesforce about starting a business relationship. Salesforce employees began communicating with Backpage employees and learned about Backpage’s process and priorities.

The conversations ranged from granular details about the scope of the potential relationship and the services Salesforce would provide to general communications about Backpage’s business.

As negotiations progressed, the Salesforce executive team was keen on receiving updates about the deal.

Ultimately, Salesforce and Backpage entered a contract in late 2013.

The business relationship lasted until December 2018.

While Salesforce was providing its CRM software to Backpage, Plaintiffs A.B. and J.F. were trafficked through advertisements posted on Backpage for the Houston geographic area.2

In or around 2014, A.B. was sold for unlawful sex acts through force, fraud, and coercion.

In or around 2018, J.F. was sold for unlawful sex acts by any means.

Plaintiffs sued Salesforce in the Southern District of Texas. Plaintiffs allege that Salesforce violated the Trafficking Victims Protection Act3 and chapter 98 of the Texas Civil Practice and Remedies Code.4

The thrust of the complaint is that by supplying its tools, support, and resources to Backpage, Salesforce knowingly facilitated sex trafficking and directly enabled Backpage to function.

Salesforce first moved to dismiss, arguing, inter alia, that section 230 shielded it from liability.

The district court denied the motion with respect to the section-230 question and allowed limited discovery on that issue.

2 These allegations are taken from a representative complaint that is also referenced by Plaintiffs on appeal.

3 18 U.S.C. § 1595.

4 Five of the six Plaintiffs also alleged conspiracy, negligence, and gross negligence. The district court dismissed those common-law claims, so they are not before the panel.

When limited discovery concluded, Salesforce moved for summary judgment on the section-230 issue.

The district court denied the motion, holding that section 230 does not shield Salesforce because Plaintiffs’ claims do not treat Salesforce as a publisher or speaker of third-party content.

After denying Salesforce’s motion for summary judgment, the district court sua sponte certified its order for interlocutory appeal.

In its certification order, the court identified three controlling questions of law on which there may be substantial grounds for difference of opinion:

1.       Is Salesforce a provider of an “interactive computer service” such that it qualifies as an entity entitled to the protection of section 230’s immunity provisions?

2.       Do Plaintiffs’ claims treat Salesforce as a publisher or speaker such that it can invoke the immunity provisions of section 230?

3.       If Salesforce is

(a) a provider of “interactive computer services,”

and

(b) is treated as a publisher or speaker by Plaintiffs’ claims, may Plaintiffs nevertheless proceed with their federal and state law claims under the Fight Online Sex Trafficking Act’s exemption to section- 230 immunity?

A panel of our court granted leave to file an interlocutory appeal, and we now review the controlling questions of law de novo.

Overdam v. Texas A&M Univ., 43 F.4th 522, 526 (5th Cir. 2022) (per curiam)

(first citing Yamaha Motor Corp., U.S.A. v. Calhoun, 516 U.S. 199, 205 (1996);

and then

citing McMillan v. Amazon.com, Inc., 983 F.3d 194, 198 (5th Cir. 2020)).

II

Our “jurisdiction is not confined to the precise question[s] certified by the lower court[.]”

Hernandez v. Results Staffing, Inc., 907 F.3d 354, 363 (5th Cir. 2018)

(quoting United States v. Stanley, 483 U.S. 669, 677 (1987)).

Because we can resolve this appeal by answering only the second certified question, we do just that.

See Dobbs v. Jackson Women’s Health Org., 597 U.S. 215, 348 (2022) (Roberts, C.J., concurring in the judgment)

(“If it is not necessary to decide more to dispose of a case, then it is necessary not to decide more.”).

III

“Whenever a man publishes, he publishes at his peril.”5

That axiom no longer rings true in the internet era.

In 1996, Congress enacted section 230(c)(1) of the Communications Decency Act:

“No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider.”

47 U.S.C. § 230(c)(1).

With only twenty-six words, Congress fundamentally altered the landscape of liability for publishing content online.

Section 230 provides immunity when the defendant is

(1) the provider or user of an interactive computer service

and

(2) treated as the publisher or speaker of third-party content.6

Id.

We address only the second requirement.

Salesforce—standing accused of knowingly benefiting from participation in a sex-trafficking venture in violation of 18 U.S.C. § 1595 and Texas Civil Practice and Remedies Code § 98.002—argues that section 230 cloaks it with immunity because Plaintiffs’ claims “necessarily” treat it as the publisher or speaker of advertisements posted on Backpage.

We disagree.

The text of section 230, our precedent, and the precedent of our sister circuits uniformly reject the argument Salesforce advances.

5 The King v. Woodfall, 98 Eng. Rep. 914, 916 (1774).

6 While courts sometimes break (2) into constitutive parts (i.e., publisher or speaker and third-party content), the parties briefed the issues in line with this phrasing.

Instead, the proper standard is whether the duty the defendant allegedly violated derives from their status as a publisher or speaker or requires the exercise of functions traditionally associated with publication.

Under this standard, Plaintiffs’ claims do not treat Salesforce as a publisher or speaker of third- party content.

Accordingly, Salesforce cannot avail itself of section-230 immunity.

A

“As always, we start with the text.”

Campos-Chaves v. Garland, 144 S. Ct. 1637, 1647 (2024)

(citing Bartenwerfer v. Buckley, 598 U.S. 69, 74 (2023)).

Section 230 plainly provides that no interactive computer service “shall be treated as the publisher or speaker” of third-party content.

47 U.S.C.§ 230(c)(1).

A “careful exegesis of the statutory language” reveals that the central inquiry is whether a claim treats the defendant as a publisher or speaker.

Barnes v. Yahoo!, Inc., 570 F.3d 1096, 1100 (9th Cir. 2009)

(citing Fair Hous. Council of San Fernando Valley v. Roommates.Com, LLC, 521 F.3d 1157, 1171 (9th Cir. 2008) (en banc)).

By focusing on the phrase “treated as the publisher or speaker,” we maintain fidelity to the statute Congress enacted— extending section-230 immunity no further than the text requires.

Estate of Bride ex rel. Bride v. Yolo Techs., Inc., 112 F.4th 1168, 1175–76 (9th Cir. 2024)

(citing Doe v. Internet Brands, Inc., 824 F.3d 846, 853 (9th Cir. 2016)).

Our precedent aligns with this common-sense reading of section 230’s text.

In Doe v. MySpace, Inc., we adopted a functional, claims-analysis approach to the question of whether a plaintiff’s claim treats a defendant as a publisher or speaker of third-party content.

528 F.3d 413 (5th Cir. 2008).

There, the plaintiff sued MySpace on a negligence theory of liability, alleging “fail[ure] to implement basic safety measures to prevent sexual predators from communicating with minors on its [web]site.”

Id. at 416.

We affirmed the district court’s dismissal of the plaintiff’s claims on section-230- immunity grounds.

Id. at 422.

Although the plaintiff argued the claims did not seek to treat MySpace as a “publisher,” but rather to hold MySpace responsible for its own conduct, we affirmed the district court’s conclusion that this was simply “artful pleading.”

Id. at 419–20.

Looking at the specific claims the plaintiff advanced, we found—by reference to sister circuit decisions—that the plaintiff sought to hold MySpace “liable for decisions relating to the monitoring, screening, and deletion of content from its network—actions quintessentially related to a publisher’s role.”

Id. at 420

(quoting Green v. Am. Online (AOL), 318 F.3d 465, 471 (3d Cir. 2003) (internal quotation marks omitted)).

This meant that “[t]heir allegations [were] merely another way of claiming that MySpace was liable for publishing the communications and they [spoke] to MySpace’s role as a publisher of online third-party-generated content.”

Id.

Accordingly, section 230 barred the claims.

Id.

Although much has changed in the sixteen years since we decided MySpace, one thing has remained constant: the text of section 230.

To the extent that our cases since MySpace have understood the section-230 analysis as focusing on the specific claims and allegations advanced by a plaintiff, those cases have remained faithful to the text of the statute Congress enacted.

See, e.g., Free Speech Coal., Inc. v. Paxton, 95 F.4th 263, 284–87 (5th Cir. 2024)

(using a claims-analysis approach to distinguish “speaker-liability” from liability under Texas statute regulating the knowing and intentional publication or distribution of sexual material harmful to minors), cert. granted, 144 S. Ct. 2714 (2024);

Diez v. Google, Inc., 831 F. App’x 723, 724 (5th Cir. 2020) (per curiam)

(“[Section] 230 creates federal immunity to any cause of action that would make internet service providers liable for [third-party content].”

(emphasis added) (internal citations omitted)).

In contrast to our claims-analysis approach, we have rejected a mechanical, but-for reading of section 230.

See Paxton, 95 F.4th at 286. A but-for test that asks whether third-party speech lies anywhere in the chain of causation leading to the alleged harm would expand section-230 immunity beyond the statute’s text.

See Yolo, 112 F.4th at 1176 n.2 (citing Internet Brands, 824 F.3d at 853).

Such a test would align more with a statute that read “shall be held liable for conduct involving third-party speech.”

But that is not the statute Congress enacted.

See 47 U.S.C. § 230(c)(1).

In Paxton, we rejected the plaintiffs’ misguided reading of MySpace that was akin to a but-for analysis of section 230’s publisher-or-speaker question.

95 F.4th at 286.

There, the plaintiffs argued that MySpace stood for the proposition that “Congress provided broad immunity under the [Communications Decency Act] to Web-based service providers for all claims stemming from their publication of information created by third parties.”

Id. (quoting MySpace, 528 F.3d at 418) (emphasis added by plaintiffs).

We concluded this interpretation—which would impute a but-for test into section 230—missed the point.

See id.

Instead, “[t]he emphasis, properly placed, would read ‘Congress provided broad immunity under the [Communications Decency Act]to Web-based service providers for all claims stemming from their publication of information created by third parties.’”

Id. (quoting MySpace, 528 F.3d at 418) (emphasis in original).

In other words, the emphasis, properly placed, would emphasize whether claims treat a defendant as a publisher or speaker, not whether third-party speech lies somewhere in the chain of causation.

B

Although we have not explicitly recognized as much, the MySpace analytical framework mirrors that of other federal courts—both sister circuits and district courts within our circuit.7

To determine whether a claim treats a defendant as a publisher or speaker, these courts look to the nature of the claim and the duties the plaintiff seeks to impose on the defendant.

“To put it another way, courts must ask whether the duty that the plaintiff alleges the defendant violated derives from the defendant’s status or conduct as a ‘publisher or speaker.’”

Barnes, 570 F.3d at 1102.

For example, if the claim seeks to hold the defendant liable for “deciding whether to publish, withdraw, postpone or alter content[,]” the claim treats the defendant as a publisher or speaker and is barred by section 230.

Zeran, 129 F.3d at 330.

In making this determination, a court can hypothesize what would happen if the allegations were true and the defendant were found liable.

See Force v. Facebook, Inc., 934 F.3d 54, 82 (2d Cir. 2019) (Katzmann, C.J., concurring in part and dissenting in part);

Yolo, 112 F.4th at 1176.

A court may “look . . . to what the duty at issue actually requires: specifically, whether the duty would necessarily require an internet company to monitor [, alter, or remove] third-party content.”

Force, 934 F.3d at 83 (Katzmann, C.J., concurring in part and dissenting in part) (quoting HomeAway.com, Inc., v. City of Santa Monica, 918 F.3d 676, 682 (9th Cir. 2019)).

If it would, then the claim is barred by section 230. Id. This thought experiment serves a limited—

7 E.g., Barnes, 570 F.3d at 1102; Zeran, 129 F.3d at 332–33; Jane Doe No. 1 v. Backpage.com, LLC, 817 F.3d 12, 19 (1st Cir. 2016); Fed. Trade Comm’n v. Match Grp., Inc., No. 3:19-CV-2281, 2022 WL 877107, at *8–9 (N.D. Tex. Mar. 24, 2022) (Kinkeade, J.); Doe (S.M.A.) v. Salesforce, Inc., No. 3:23-CV-0915, 2024 WL 1337370, at *8 (N.D. Tex. Mar. 28, 2024) (Boyle, J.).

yet critical—purpose: it helps a court detect when a plaintiff has engaged in the kind of artful pleading MySpace prohibits.

528 F.3d at 419–20.

If courts did not reach a plaintiff’s specific factual allegations and the implications of those allegations, we would struggle to detect claims that seek to avoid section 230’s grant of immunity by artfully pleading their allegations in terms of negligence or any other duty not traditionally associated with publication.

See id.

Like we did in MySpace and Paxton, other federal courts have rejected a mechanical approach to the publisher-or-speaker question.

In MySpace, we held that a plaintiff cannot artfully plead around section 230 by casting their claims in terms of first-party conduct when they really seek to enforce a duty traditionally associated with publication.

528 F.3d at 420.

In other words, it does not matter whether the plaintiff styles the claims in terms of publication.

See id.

It similarly does not matter whether publication is an explicit element of the plaintiff’s claim.

Force, 934 F.3d at 64 n.18.

And critically, like we held in Paxton, the fact that third-party speech is involved somewhere in the chain of causation that led to a plaintiff’s injuries does not mean that a plaintiff’s claims necessarily treat a defendant as a publisher or speaker of that third- party speech.

Internet Brands, 824 F.3d at 853; Force, 934 F.3d at 82 (Katzmann, C.J., concurring in part and dissenting in part);

G.G. v. Salesforce.com, Inc., 76 F.4th 544, 567 (7th Cir. 2023).

This last point warrants some emphasis:

the text of section 230 “does not mandate a ‘but-for test that would provide immunity . . . solely because a cause of action would not otherwise have accrued but for the third-party content.’”

Force, 934 F.3d at 82 (Katzmann, C.J., concurring in part and dissenting in part) (quoting HomeAway.com, Inc., 918 F.3d at 682);

accord Paxton, 95 F.4th at 286; G.G., 76 F.4th at 567.

In other words, section 230 “does not provide a general immunity against all claims derived from third- party content.”

Internet Brands, 824 F.3d at 853;

see also

Calise v. Meta Platforms, Inc., 103 F.4th 732, 742 (9th Cir. 2024)

(“[I]t is not enough that a claim, including its underlying facts, stems from third-party content for § 230 immunity to apply.”).

Accordingly, providers of interactive computer services may be held liable for speech or conduct “that is properly attributable to them[,]” even if third-party speech exists somewhere upstream.

Nemet Chevrolet, Ltd. v. Consumeraffairs.com, Inc., 591 F.3d 250, 254 (5th Cir. 2009);

see also Anderson v. TikTok, Inc., 116 F.4th 180, 184 (3d Cir. 2024).

C

The heart of Salesforce’s argument is that section 230 grants Salesforce broad immunity in all cases arising from the publication of third-party content.

According to Salesforce, because the only link between Salesforce and Plaintiffs’ sex-trafficking-related harms is the illicit ads their traffickers posted on Backpage, Plaintiffs necessarily seek to treat Salesforce as the publisher or speaker of those ads.

Although some daylight may peek through between Salesforce’s theory of section 230—let’s call it the only-link theory—and a but-for analysis, we close the blinds on its theory for two reasons.

First, like the but-for analysis, the only-link theory would expand the grant of immunity beyond section 230’s text.

Yolo, 112 F.4th at 1176 n.2 (citing Internet Brands, 824 F.3d at 853).

Under this theory, any time third-party content is the only link in the chain of causation, section 230 provides immunity—encompassing vastly more than claims that seek to treat a defendant as a publisher or speaker of third-party content.

The propriety of such an extension raises interesting questions.

The internet—and the world—have changed in numerous ways since 1996.

Indeed, “cloud-based” only recently attained any non-meteorological significance.

Whether this warrants an expansion (or contraction) in the scope of section-230 immunity is not clear.

But one thing is clear: any changes are for Congress, not the courts, to effectuate.

We are bound to interpret the text of section 230 as enacted by Congress.

And that text supports neither a but-for nor an only-link mode of analysis.

Second, the only-link theory cannot stand on its own two feet.

According to Salesforce, if the only link between a plaintiff’s harm and the defendant is third-party content, then section 230 bars the claims.

On that logic, if there were some conduct by a defendant in addition to the third-party content, section 230 would not bar the claims.

But what if the defendant’s conduct fell squarely within section 230’s text?

For example, publishing defamatory third-party content.

To say that in such situations section 230 would not provide immunity “taxes the credulity of the credulous.”

Maryland v. King, 569 U.S. 435, 466 (2013) (Scalia, J., dissenting).

But Salesforce’s only-link theory, taken to its logical end, would require that anomaly.

Avoiding that anomaly requires a focus on the type of conduct involved.

In other words, it requires an analysis of whether the duty the defendant allegedly violated derives from their status as a publisher or speaker or requires the exercise of functions traditionally associated with publication.

And that puts us right back where we started: the proper standard, derived from the statute Congress enacted.

Because neither the text of section 230 nor our precedent requires such a meandering analytical framework—that in any event leads right back to the proper framework—we decline Salesforce’s invitation to go down the rabbit hole.8

8 See generally Lewis Carroll, Alice’s Adventures in Wonderland (1865).

IV

We have expounded an analytical framework grounded in section 230’s text and this court’s precedent, which is also consistent with the precedent of our sister circuits.

In line with those authorities, we ask “whether the duty that the plaintiff alleges the defendant violated derives from the defendant’s status or conduct as a ‘publisher or speaker.’”

Yolo, 112 F.4th at 1177 (quoting Barnes, 570 F.3d at 1102).

Answering this question “requires a close examination of the duty underlying each cause of action[.]”

Id. at 1176 (quoting Barnes, 570 F.3d at 1107).

If the duty “derives from the defendant’s status or conduct as a ‘publisher or speaker[,]’” then section 230 precludes liability.

Id. at 1177 (quoting Barnes, 570 F.3d at 1102).

But if the plaintiff’s theories would not require the defendant to exercise some kind of publication or editorial function, then section 230 does not preclude liability.

Id.

Applying that standard here, Plaintiffs’ claims do not treat Salesforce as the publisher or speaker of third-party content.

Plaintiffs sued Salesforce asserting claims for knowingly benefiting from participation in a sex-trafficking venture under 18 U.S.C. § 1595 and Texas Civil Practice and Remedies Code § 98.002.9

Specifically, Plaintiffs allege that Salesforce knowingly assisted, supported, and facilitated sex trafficking by selling its tools and operational support to Backpage even though it knew (or should have known) that Backpage was under investigation for facilitating sex trafficking.

In essence, Plaintiffs allege that Salesforce breached a statutory duty to not knowingly benefit from participation in a sex-trafficking venture.

To state the obvious: this duty does not derive from Salesforce’s status or conduct as a publisher or speaker and would not require Salesforce to exercise publication or editorial functions to avoid liability.

9 See supra note 4.

See Yolo, 112 F.4th at 1176–77.

Rather, the duty simply requires that Salesforce not sell its tools and operational support to a company it knew (or should have known) was engaged in sex trafficking.

This is not an action “quintessentially related to a publisher’s role.”

MySpace, 528 F.3d at 420 (quoting Green, 318 F.3d at 471).

Accordingly, section 230 does not immunize Salesforce from Plaintiffs’ claims.10

The same is true with respect to Salesforce’s interactions with Backpage data.11

In this context, Salesforce argues that Plaintiffs’ claims would treat Salesforce as a publisher or speaker of data Backpage stored or transmitted using Salesforce’s software.

Such claims, Salesforce argues, would require Salesforce to police the use of its products and withdraw or restrict access from customers that misuse them by uploading or transmitting allegedly illegal content.

This argument misses the mark in two respects.

First, the argument does not comport with the plain text of section 230.

As the Seventh Circuit aptly explained,

It does not make sense to treat Salesforce as ‘publishing’ to Backpage itself content that came from Backpage. With respect to any content that was provided by Backpage, Salesforce fails

10 We disagree with the district court’s conclusion that MySpace does not apply.

Although the district court correctly noted that Myspace, and much of our section-230 precedent, deals with platforms rather than equipment or service providers,

see, e.g., Doe ex rel. Roe v. Snap, Inc., No. 22-20543, 2023 WL 4174061 (5th Cir. June 26, 2023) (per curiam);

Google, Inc. v. Hood, 822 F.3d 212 (5th Cir. 2016),

that is not the lodestar of our section-230 analysis. Rather, as section 230’s text requires, we focus on whether the claims treat the defendant as a publisher or speaker of third-party content.

The fact that a defendant is a platform only bears on that analysis to the extent it demonstrates that a defendant is being treated as a publisher or speaker of third-party content.

11 As distinct from Backpage-user data.

No. 23-20604

Section 230’s ‘publisher or speaker’ element.

To the extent that Salesforce might have ‘published’ its own data to Backpage’s employees, Salesforce fails Section 230’s [other] element, which requires that the published content be ‘provided by [a third party].’

G.G., 76 F.4th at 568 (citing 47 U.S.C. § 230(c)(1)).

Second, the claims do not target actions that are “quintessentially related to a publisher’s role.”

MySpace, 528 F.3d at 420 (quoting Green, 318 F.3d at 471).

While Salesforce argues it would be required to police the use of its products, that is not quintessentially the function of a publisher.

See id. (quoting Green, 318 F.3d at 471)

(monitoring, screening, and deletion of content from its network are actions quintessentially related to a publisher’s role).

Of course, a publisher might also need to police the use of its products.

But that is not because of the publisher’s unique functions.

Rather, it is because a publisher—like Salesforce and every other entity subject to United States federal law—owes a statutory duty to the public not to knowingly benefit from participation in a sex-trafficking venture.

See 18 U.S.C. § 1595.

To reach this conclusion, we do not accept any of Plaintiffs’ factual allegations as true.

Although the section-230 publisher-or-speaker analysis often occurs at the motion-to-dismiss stage, the presumption that the allegations are true does not drive the analysis.

Compare G.G., 76 F.4th at 548–49, with id., 76 F.4th at 566–67.

Rather, the analysis focuses on the claims and theories of liability advanced by a plaintiff.

See, e.g., MySpace, 538 F.2d at 420.

“[W]hat matters is whether the cause of action inherently requires the court to treat the defendant as the ‘publisher or speaker’ of content provided by another.”

Barnes, 570 F.3d at 1102 (emphasis added).

To analyze the inherent nature of Plaintiffs’ causes of action, we must necessarily look to their complaint.12

See, e.g., Roommates.Com, 521 F.3d at 1164–65, 1165 n.16

(looking to plaintiffs’ complaint in examining the scope of their substantive claims to determine whether section-230 immunity applies at summary judgment).

But we do not accept the allegations associated with their claims as true. As section 230 requires, we only consider whether the allegations inherently seek to treat Salesforce as a publisher or speaker of third-party content, not whether—if true—they would treat Salesforce as a publisher or speaker.

To be sure, a plaintiff might use section 1595 or section 98.002 to artfully plead around section-230 immunity.

For example, a plaintiff might allege that a defendant knowingly benefitted from a sex-trafficking venture by failing to implement adequate content-moderation policies.

Although pled in terms of first-party conduct, this claim would ultimately seek liability “for decisions relating to the monitoring, screening, and deletion of content from its network—actions quintessentially related to a publisher’s role.”

MySpace, 528 F.3d at 420 (quoting Green, 318 F.3d at 471).

In such a case, section-230 immunity would likely attach.

But that is not the case here.

Plaintiffs’ claims do not seek to hold Salesforce liable for failing to moderate content or any other functions traditionally associated with a publisher’s role.

See id. at 419–20.

Rather, Plaintiffs seek to hold Salesforce liable for allegedly providing back-office business services to a company it knew (or should have known) was engaged in sex trafficking.

These claims would not inherently require Salesforce, if found liable, to exercise any functions associated with publication.

12 Counsel for Salesforce seems to recognize as much given their representation before the district court that no discovery was necessary for the court to definitively resolve the section-230 issue.

Accordingly, Plaintiffs have not engaged in artful pleading, and section 230 does not apply.

The summary judgment evidence confirms this account, demonstrating that Plaintiffs do not seek liability for any publication-related functions. The evidence shows that Salesforce did not have any role in:

·        screening, monitoring, or filtering content;

·        reviewing or analyzing third-party content;

·        transmitting or hosting third-party content;

·        editing or altering third-party content;

·        developing or enforcing content-moderation policies; or

·        deciding how third-party content was organized or displayed.

This evidence also elucidates that Plaintiffs do not artfully plead around section 230 by shrouding an attack on functions associated with publication in terms of section 1595 or section 98.002.

Indeed, the summary judgment evidence may even preclude claims predicated on such functions.13

What remains is Plaintiffs’ attempt to hold Salesforce liable for allegedly providing back-office business services to a company it knew (or should have known) was engaged in sex trafficking.

Again, that is not conduct traditionally associated with publication, so Plaintiffs’ claims are not barred by section 230.

On the topic of summary judgment evidence, one last point: the evidence highlights yet another flaw with Salesforce’s only-link theory.

13 Plaintiffs agree that Salesforce had “nothing to do” with the trafficking advertisements posted on Backpage.

Even if we could look past the only-link theory’s departure from section 230’s text—which we cannot—Salesforce does not prevail when that theory is applied to the summary judgment record at hand.

The summary judgment evidence paints a picture that belies Salesforce’s forceful argument that the only link between Plaintiffs’ harm and Salesforce is third-party content.

Indeed, the evidence marshalled by Plaintiffs—including emails between Salesforce and Backpage employees discussing sex-trafficking legislation’s impact on their ability to continue to do business—suggests another link between Salesforce and Plaintiffs’ harms.

Namely, Salesforce’s provision of back-office business services to Backpage.

We do not express any view regarding the merits of the underlying dispute.

Rather, we simply note that under Salesforce’s proposed interpretation of section 230, at a minimum there could exist a genuine dispute of material fact whether the only link between the harm and Salesforce was third-party content.

In other words, Salesforce would not have been entitled to summary judgment even under its own novel theory.

* * *

To sum things up:

Plaintiffs’ claims do not treat Salesforce as a publisher or speaker of third-party content because they do not

(1) derive from Salesforce’s status or conduct as a publisher or speaker

or

(2) impose on Salesforce any duty traditionally associated with publication.

As a result, section 230 imposes no barrier, and Plaintiffs’ claims against Salesforce may proceed.

This conclusion follows from section 230’s text and our precedent interpreting same.

As an added benefit, this conclusion also aligns with the precedent of our sister circuits.

In deciding the section-230-immunity question, we say nothing about the underlying merits of this dispute.

Although section 230 does not immunize Salesforce, that does not necessarily mean that Salesforce is liable.

Immunity and liability are distinct.

The question of whether Salesforce is liable to Plaintiffs because it knowingly benefitted from participation in a sex-trafficking venture is not before our court and remains to be answered.

V

Plaintiffs’ claims do not treat Salesforce as the publisher or speaker of third-party content, so we AFFIRM the district court’s denial of summary judgment and REMAND for further proceedings consistent with this opinion.

Aborting the Radical Biblical-Pounding Court at the Fifth Circuit: Unanimous SCOTUS Justices Reverse (9-0)

Supreme Court Strikes Down Texas-Led Challenge to Mifepristone Access by CA5 3-Panel comprising of Judges Jennifer Elrod, Jim Ho and Wilson.

Tiny Home and Mortgage: Debt Buyer OneMain Fin. Grp Backed by Homeowner-Hostile Fifth Circuit

This is a 1089 square foot, 1.0 bathroom, single family home. This home is located at 906 S 4th St, Bangs, TX 76823. The value is $46,400.

Morlock LLC’s 13 Years of “Thwarting Foreclosure” Ends With Free and Clear Title on $720k Valued Home

Another lawsuit on LIT involving Klein, aka Morlock LLC, who’s sanctioned lawyer Jerry Schutza obtains judgment that bank’s lien is void.

The Fifth Circuit On Section 230 Immunity: Any Cloud n’ Hosting Provider is Liable for Customer’s Content
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

To Top