I am about to push live a niche auction site (yes another one) I am working on the items that are not allowed, and came up with this question. How do I determine what not to allow? I know not to allow illegal items but is it the users responsibility if they auction something that I miss? Is there anyway that I can get sued for allowing an auction with some illegal material go through? I am not attempting to allow these things but I cannot, nor can an attorney know every illegal item in the world much less the USA. I have heard from someone that when it comes to the internet, the users can post anything onto your site and you cannot be held respnosible is this true? Like I said I am not attempting to break any rules I just don't want to get burned. I am putting in the terms and conditions that the site is strictly a website to connect buyers to sellers, and vice versa and that the user assumes all responsibility for their listings and transactions. I will also have a hold harmless clause do you think this will be enought?
Yes, you can be held liable. Louis Vuitton was just awarded $63 million against eBay because the court ruled they (eBay) didn't do enough to stop the sale of counterfeit goods. A TOS isn't going to waive all liability - and no TOS can prevent someone from suing you. Hire an attorney to write a TOS that will give you as much protection as legally possible and look into setting up an entity like a corporation or LLC to limit your personal exposure.