Liability for internet content providers for false statements?

A California appeals court ruled July 22, 2004 that EBay Inc.'s savvy user agreement relieved the company of liability for the defamatory postings one user of its auction site made against another. However, the court said that a provision of the California Decency Act of 1996, which provision is routinely invoked by content providers as a defense, does not immunize eBay against liability for disseminating information it knew, or had reason to believe, was false.