YouTube has one motion to reject a lawsuit filed in April by payment startup Ripple accusing YouTube of allowing XRP giveaways on its network.
Ripple claims that YouTube turns a blind eye to scammers and allows paid advertisements that encourage unwitting viewers to give away their XRP. Ripple, which owns more than half of the total supply of XRP, says the scam has hurt its brand.
In her response, YouTube quotes Section 230 of the Communications Decency Act, which provides certain protection to websites with user-generated content. YouTube states that it should not be held responsible for third party content on its website. It adds that it has not actively participated in the scams and even removed the fraudulent videos brought to the company’s attention.
“Although YouTube itself is the victim of the scam, plaintiffs have filed this lawsuit alleging that YouTube has violated their legal and municipal rights to publicity, the unfair competition law of California, Cal. Bus. & Prof. Code § 17200 (” UCL “), and their rights under Federal Trademark Law, 15 USC § 1114 (1). Claimants have made no claims against actual fraudsters.”
It seems that YouTube’s legal battle is just beginning. Apple co-founder Steve Wozniak is also suing the media giant and parent company Google for allowing scammers to use his name in Bitcoin giveaways.
Wozniak and 17 other claimants claim that YouTube is aware of the scams, but has done nothing to remove the videos.
“Wozniak has repeatedly informed YouTube that the scam videos are fraudulent and that Wozniak has not consented to this illicit and illegal use of his name and likeness. Despite Wozniak’s efforts, YouTube has always failed or refused to intervene in a timely manner, or even but to make a person respond, to stop the scam videos and promotions and stop selling ads to the scammers. “
According to the lawsuit brought before the Superior Court of California on Tuesday, YouTube’s inaction caused irreparable damage to Wozniak’s reputation and defrauded users millions of dollars.
Prosecutors are seeking damages and want YouTube to remove the fraudulent videos and promotions.
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