Etsy filed a declaratory judgment action against the Cashmere and Camel Hair Manufacturers Institute (CCMI) to confirm its immunity under Section 230 regarding alleged false advertising of third-party products. The marketplace is seeking to block CCMI's demands to manually scrutinize over 100 million listings, arguing that the trade group's aggressive enforcement would force a “wholesale redesign” of its business model. The legal offensive follows a years-long dispute where CCMI, which voluntarily dismissed a previous lawsuit in February 2023, continued to flag items like “Cashmere Sweater Candles” as mislabeled because they contained wax rather than wool.
