Amazon Wins Greenwashing Lawsuit as SCOTUS Chooses Not to Review Case


The Supreme Court has declined to review a case from lower circuit courts concerning Amazon and its Section 230 protections. Planet Green Cartridges, a U.S. manufacturer of printer cartridges, filed a lawsuit against Amazon for permitting third-party entities to sell products that were inaccurately labeled as re-manufactured or recycled. Re-manufacturing is a sustainable practice that minimizes the use of raw materials and energy by restoring products to their original manufacturer specifications.

Planet Green Cartridges sought $500 million in damages from Amazon for the liability associated with third-party sellers, contending that Amazon’s algorithm facilitated listings that misleadingly advertised new, imported cartridges, which resulted in $3 billion in sales and created unfair competition by misleading consumers into purchasing less environmentally friendly products.

Amazon’s defense was based on Section 230 of the 1996 Communications Decency Act, which shields internet service providers from regulation and legal responsibility for content posted by users. This is viewed as a crucial aspect of maintaining a free and open internet.

Following conflicting rulings from lower courts, the 9th Circuit court dismissed the lawsuit in March, concluding that Amazon could not be held accountable for claims made by third-party sellers. Planet Green Cartridges then sought to have the Supreme Court clarify whether Section 230 protections extend to online marketplaces that profit from endorsing, promoting, or distributing products, as Amazon does, rather than merely hosting listings.

The issues of Section 230 and online censorship are divisive in the U.S., particularly as social media platforms have significantly scaled back content moderation. The complexity of the situation has increased with the use of AI-driven algorithms. In 2023, the Supreme Court considered two Section 230 cases against YouTube and Twitter (now X), arguing that these companies should be held responsible for facilitating terrorism through their algorithms. The court dismissed the claims against Google, the parent company of YouTube, and upheld Twitter’s Section 230 protections.