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The U.S. Court of Appeals for the District of Columbia Circuit on Friday rejected the Department of Agriculture’s interpretation of two federal laws. The agency had accused Amazon of supporting the unlawful importation of poultry and kaffir lime leaves and attempted to impose the maximum fine under its broad reading of the laws.
Chief Judge Sri Srinivasan relied on two recent Supreme Court decisions to vacate USDA’s fine against Amazon, pointing to the, Srinivasan emphasized that statutory interpretations should align with well-established legal principles and not merely rely on agency interpretations. Consequently, the court vacated the $1 million fine against Amazon.
The court also found no substantial evidence that the Seattle-based online retailer knowingly and substantially assisted in the illegal importations, which would have been required to find Amazon liable. The ruling underscored that the mere operation of a neutral service, without intent to support unlawful activities, does not meet the threshold for aiding and abetting liability.
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