Section 230 is a part of the Communications Decency Act in the United States, providing legal protection for online platforms like search engines and social media websites. This means these platforms are not legally responsible for what users post, allowing them to operate without constant legal challenges.

When Section 230 Came into Existence

In 1991, a columnist’s defamatory comments led to a lawsuit against CompuServe, an online service with forums. The court ruled CompuServe not liable since they didn’t review forum content before posting.

In 1995, the court viewed Prodigy as a publisher in a similar case (Stratton Oakmont, Inc. v. Prodigy Servs. Co.), holding them responsible for defamatory posts since Prodigy used to moderate some of their content. To avoid liability, Prodigy would need to stop moderating content altogether, like CompuServe.

Members of Congress found the ruling problematic, fearing web companies might cease content moderation to avoid lawsuits. To prevent this and curb the spread of extreme content, Senator Ron Wyden and Representative Chris Cox created Section 230.

How Section 230 Protects Free Speech

When it was conceived, the Communication Decency Act was not supported by tech companies. Some parts of the law were designed as anti-free speech and were ruled unconstitutional by the Supreme Court. However, Section 230 supports free speech by protecting both providers and users of computer service companies. Today, this includes major companies like Facebook, Twitter, Google, Microsoft, and small-time bloggers.

These service providers and companies are shielded from being considered publishers of information shared or posted on their sites. They can moderate the content on their platforms as they see fit, without facing legal consequences if an individual or another company objects to the content.

It’s this protection that has led to significant innovation, development, and advancement on the web today. However, it also means that users can post deceptive content, and the hosts aren’t legally responsible for removing it or required to take the proper means to prevent it.

How Scammers Flourished Under Section 230

In a blog post from June 2019, Google’s Director of Product for Google Maps, Ethan Russell, acknowledged that scammers exist on the platform. He noted that they engage in activities such as defrauding customers by posing as real businesses, impersonating real businesses, and creating fake locations to secure leads at the local level and make a profit.

Russell claimed that Google has added a way for people to report suspicious business listings, which allows the company to investigate and remove the content if it’s found to be fraudulent. The company had over 3 million fake profiles for businesses were removed and more than 150,000 abusive user accounts were disabled.

Despite Google’s supposed efforts to combat fraudulent businesses on their platform, actions speak louder than words. Fake businesses, including fraudulent garage door repair companies, continue to be a major problem on Google Maps as the company exploits Section 230 to avoid responsibility.

This legal protection makes tech companies less motivated to actively remove fraudulent pages because they are not legally liable for what is being posted on their platforms. This encourages a more hands-off approach and insufficient investment of resources for proper moderation of fraudulent business listings.

How Section 230 Affects Consumers and People

NBC’s Today Show explored the issue of “ghost businesses” on Google. Reporter Vicky Nguyen spoke with a Seattle woman who contacted a locksmith that she found on the Google Maps platform. Unfortunately, she quickly discovered that her call had simply gone to a call center that dispatched an unqualified technician to perform shoddy work on her door, leaving her with a damaged door and a hefty bill.

The segment investigated many other “ghost” business listings that use addresses of residential homes and fake locations, leaving both residents and business owners surprised to find out that their addresses were being used by scammers. Unfortunately, as Google fails to address the problem, there’s little they can do.

Mike Blumenthal, a marketing veteran, explains how spam pages on Google work as lead generation tools. Consumers use the internet to perform a search for a service, like a plumber or garage door repair service. The results that pop up often include more scam listings than genuine, and in many cases, those fraudulent listings rank higher in the search results than legitimate businesses.

When a consumer calls the phone number for the phony listings, they reach what’s known as a call tree. They answer a few basic questions, and based on their responses, they are routed to a supposedly “local agent”. These are often operations that serve a variety of industries, including garage door repair, locksmith, home services, mortgage, Medicare supplement insurance, etc.

Despite the fact that an actual company might end up receiving the business, fraudsters and lead generation services are still harmful. Consumers are essentially being deceived and tricked into thinking that they are directly contacting a legitimate local business that they found through a quick Google, Bing or Apple search.

In a Wall Street Journal investigation, they discovered about 11 million fake pages on Google Maps. Even after removing fake listings, scammers can quickly add more to almost any location, including people’s homes. They systematically add hundreds of fake pages daily, creating a continuous challenge and an endless loop. This continuously harms consumers by spreading misinformation, leading them to visit non-existent business locations and experience deception or fraud. The consequences are wasted time, frustration, and financial losses for consumers who rely on the information available on the platforms.

In an article by Slate, author Danielle Citron argues that over the last 23 years, Section 230 has become a shield for internet platforms, with courts finding them immune from liability regardless of the situation. This often leaves victims of online abuse little legal recourse. Individuals targeted for harassment often struggle, unable to have their names removed from websites, as Section 230 is now applied in ways that deviate from its original intended purpose. It can still serve as a tool for protecting free speech on the internet, excluding those with bad intentions from being free from liability.

How Section 230 Affects Garage Door Repair Companies?

Since Section 230 shields big tech from liability, platforms like Google, Bing, and Apple Maps aren’t legally obligated to remove fraudulent pages. As a result, they don’t invest the resources to address the problem effectively, enabling scammers to add millions of fake garage door repair pages and be listed on their platforms. This situation creates challenges for legitimate garage door repair companies, making it difficult for them to gain visibility in search results.

How Tech Companies Exploit Section 230

Search engines constantly cite Section 230 to remain immune from facing any legal consequences that they may otherwise suffer for allowing scam listings to thrive. This has been demonstrated time and time again when business owners have attempted to sue in federal courts.

Take the case of the locksmiths in Federal District Court in Washington DC. A group of locksmiths came together to file a class action lawsuit against major players in the search industry, including companies like Google and Microsoft. The locksmiths claimed that search companies are intentionally allowing false listings to be listed on their platforms. Part of their complaint states that:

“Defendants flood the market with fictitious listings to dilute Plaintiffs’ and other legitimate locksmiths’ listing in the organic and map results to the point of obscurity, thereby compelling legitimate locksmiths to pay Defendants for paid advertised results merely to be seen by the same prospective customers”.

The locksmiths, who were the plaintiffs in the case, were seeking punitive damages and alleging conspiracy, fraud, and unfair competition. This particular case against Google, Microsoft, etc. is not the first of its kind and it is unlikely to be the last. Unfortunately, judges are none the wiser, repeatedly rule in favor of the tech giants because they are protected under Section 230 of the Communications Decency Act. Even the most well-argued and convincing case is likely to fail because of the immunity that tech companies enjoy under the current interpretation of Section 230.

Locksmith Mark Baldino, which owns Baldino’s Lock and Key, believes that Google is okay with fake pages on their Maps platform since they make money off of their Ads service. The more competition that there appears to be for a service in a particular area, the more money legitimate businesses will need to spend advertising on Google. That means that Google benefits from having millions of fake maps listings since legitimate companies will continue to pay for competing on a higher placement in the search results.

Extreme Tech points out that Google’s dominance as a search engine is also what makes it so appealing to scammers. They know that they can get in front of millions of unsuspicious potential consumers and have an excellent chance of siphoning off business from legitimate companies.

How Consumers Can Protect Themselves?

It can be challenging for consumers to find a reliable and honest service for garage door repairs. Therefore, when hiring a garage door repair contractor, consumers should always verify the company’s information on relevant official sources. For example, Orange County and California residents can check the CSLB by searching the business name or license number. Consumers can also report fake map listings and be aware that many listings in search results are fake and linked to scammers. Stay vigilant and always confirm that the business is listed and legitimate before providing any personal information.

Department of Justice’s Review of Section 230

In 2019, the Trump Administration proposed changes to Section 230. While some perceive it as politically motivated, proper changes can significantly benefit consumers, legitimate businesses, and garage door repair companies nationwide.

Following the administration’s proposal, the US Department of Justice (DOJ) launched a review of Section 230 of the Communications Decency Act of 1996 in 2020. The purpose of this review was to examine the scope and application of Section 230 and determine whether changes are needed to ensure that the law continues to serve its intended purpose.

The DOJ’s review focused on three main areas. It looked at how online platforms use Section 230 to shield themselves from liability for user-generated content. It examined how Section 230 interacts with other federal laws, such as criminal law and intellectual property law. And finally, it explored the impact of Section 230 on competition and the free market.

The move sparked controversy, with some suggesting it aimed to target social media platforms criticized by the Trump administration. Conversely, others argued that the review was essential to assess Section 230’s current relevance and effectiveness in today’s digital landscape.

The DOJ released its findings and recommendations in a report in June 2021. The report suggested that Congress should consider narrowing the scope of Section 230’s immunity for online platforms in specific circumstances, like when platforms knowingly facilitate illegal activity. However, it also emphasized the importance of balancing the need for platform accountability with preserving free speech and innovation on the internet.

Bring the Web into Order – Amend Section 230

Section 230 must be revised in accordance with FTC rules to protect consumers, support legitimate businesses, including garage door repair companies, and bring order to the web. Lawmakers should not only amend the law but also consider imposing substantial fines on tech companies for listing fake businesses on their maps platforms. Additionally, establishing the act of listing a business with a fake address as a felony could serve as a strong deterrent against scammers.