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   A             ongressional                                            _______
            SResearch Service

   informing the Ieg~stative debate since 1914




Liability for Content Hosts: An Overview of

the Communication Decency Act's Section 230



June 6, 2019
Section 230 of the Communications Act of 1934, enacted as part of the Communications Decency Act of
1996 (CDA), broadly protects online service providers like social media companies from being held liable
for transmitting or taking down user-generated content. In part because of this broad immunity, social
media platforms and other online content hosts have largely operated without outside regulation, resulting
in a mostly self-policing industry. However, while the immunity created by Section 230 is significant, it is
not absolute. For example, courts have said that if a service provider passively displays content that is
created entirely by third parties, Section 230 immunity will apply; but if the service provider helps to
develop the problematic content, it may be subject to liability. Commentators and regulators have
questioned in recent years whether Section 230 goes too far in immunizing service providers. In 2018,
Congress created a new exception to Section 230 in the Allow States and Victims to Fight Online Sex
Trafficking Act of 2017, commonly known as FOSTA. Post-FOSTA, Section 230 immunity will not apply
to bar claims alleging violations of certain sex trafficking laws. Some have argued that Congress should
further narrow Section 230 immunity-or even repeal it entirely. This Sidebar provides background
information on Section 230, reviewing its history, text, and interpretation in the courts.

Legislative History

Section 230 was enacted in early 1996, in the CDA's Section 509, titled Online Family Empowerment.
In part, this provision responded to a 1995 decision issued by a New York state trial court: Stratton-
Oakmont, Inc. v. Prodigy Services Co. The plaintiffs in that case were an investment banking firm. The
firm alleged that Prodigy, an early online service provider, had published a libelous statement that
unlawfully accused the firm of committing fraud. Prodigy itself did not write the allegedly defamatory
message, but it hosted the message boards where a user posted the statement. The New York court
concluded that the company was nonetheless a publisher of the alleged libel and therefore subject to
liability. The court emphasized that Prodigy exercised editorial control over the content posted on its
site, actively controlling the content of its message boards through both an automatic software screening
program and through Board Leaders who removed messages that violated Prodigy's guidelines.
Section 230 sought to abrogate Stratton-Oakmont. One of the sponsors of the Online Family
Empowerment provision, Representative Chris Cox, argued on the floor of the House that the ruling

                                                                Congressional Research Service
                                                                  https://crsreports.congress.gov
                                                                                     LSB10306

CRS Legal Sidebar
Prepared for Members and
Committees of Congress

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