Etsy is suing the Cashmere and Camel Hair Manufacturers Institute (CCMI) over ongoing actions trying to hold marketplace accountable for false advertising of some Cashmere items sold on the site, seeking to affirm platform is protected by Section 230 and not liable for activities or content of 3rd party sellers.
CCMI, a trade association whose members include cashmere manufacturers, wholesalers, and retailers, has been raising concerns about products sold on Etsy for years.
As part of its industry activities, CCMI purchases products advertised as “cashmere” from various retail channels and sends them to laboratories for fiber‑content testing.
In 2020, CCMI began purchasing items from sellers on Etsy’s marketplace abd in n 2022, their testing found some goods to be inaccurately labeled as “cashmere” based on fiber-content results it claimed did not meet applicable labeling standards under the federal Wool Products Labeling Act.
CCMI flagged some of the items and Etsy removed them, until discussions about further action and proactive measures CCMI wanted Etsy to take broke down in September 2022 when, Etsy alleges, CCMI insisted that the marketplace change its business model and test every item described as “cashmere” offered on the site.
CCMI sued Etsy shortly thereafter, claiming violations of the Lanham Act; Massachusetts’ false advertising law; common law prohibitions on unfair competition; and Massachusetts’ Anti-Dilution Statute.
The parties ultimately...
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