California Online Marketplace Law Challenged By NetChoice

April 9, 2025, 6:50 PM UTC

A California law requiring marketplace websites to report third-parties selling stolen goods was challenged by tech industry trade group NetChoice Wednesday, which said the law illegally and unconstitutionally burdens online speech.

The law, SB 1144, violates Section 230 of the Communications Decency Act by requiring internet platforms to regulate third party conduct, and it raises Fourth Amendment concerns by requiring the collection of sensitive personal information tied to sales, the complaint said.

The 2024 law takes effect in July 2025 and “will radically expand online marketplaces’ obligations,” according to the complaint filed Wednesday in the US District Court for the ...

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