Legality has nothing to do with this. Ebay is a privately owned site, not government owned. They can determine what they do and don't want on their own website.
Legality has EVERYTHING to do with it. Our laws allow us to file any kind of suit against any kind of institution, whether private or governmental. It is then up to the courts to decide whether or not there is any legal claim to the issue. Realistically, it is a LOT easier to file action against private enterprise and win than to do so against the government.
You would be able to file action against ebay on this issue for a variety of reasons. Namely?? Discrimination. All used cloth diaper sellers are being discriminated against based soley on ARBITRARY reasons. None of the reasons that ebay has given for pulling cloth diaper listings is valid.
True, Ebay is a private company. However, they serve the public. They are not a retailer who can decide what to and not to sell on their site. They offer a service to the public. By not allowing a certain segment of the public to sell an item that is legally for sale elsewhere means that they are discriminating against that segment of the public.
For example, if you have a website of questionable YET LEGAL, content, your webhost company cannot ban your site or shut you down, just b/c other people are bothered by it. Similarly, EBAY, should not be allowed to ban the sale of legal items, just b/c some people don't like it.
Another legal issue?? Relying on outside snitches to tattle on some listings but not others. If EBAY cannot provide internal enforcement of its policies, then any removal of any listing due to an outside informant is also discriminatory. When one listing is removed b/c of a tattler, but several more go untouched, then there is something inherently wrong with Ebay's system. They need to be able to police their own rules/policies. By relying on outside informants, then they are not equally enforcing their policies across the board. That is discriminatory as well.
For now, what they need to do is make a new policy SPECIFIC to cloth diapers, so that this psycho tattle tailer can't do anythng about it anymore. Ebay can reclassify cloth diapers. Cloth diapers are unique in that, yes, they contact bodily fluids and waste, but also in that they CAN BE SANITIZED for repeated use.... by any number of babies. Just as you would see in any CLOTH DIAPERING SERVICE!!
If EBAY refuses to change this policy, then YES! THEY ARE DISCRIMINATING AGAINST CLOTH DIAPER SELLERS/BUYERS. Keep in mind that selling used cloth diapers is not an ILLEGAL activity (such as porn...) Therefore, any reason ebay offers as to why you CAN'T sell them on ebay had better be a VALID reason. Otherwise, they have no leg to stand on. They are in violation of arbitrary discrimination!!
If they are concerned about liability, then they can require a disclaimer on all used diaper sales.... or mandate washing/sanitizing instructions... BUT TO COMPLETELY BAN THE SALE OF CLOTH DIAPRES IS LEGALLY QUESIONABLE, AT THE VERY LEAST!
If Phillip Morris can legally be forced to offer public service messages about the dangers second hand smoke, then EBAY can be legally forced to not discriminate against its sellers.
Unfortunately (or fortunately) we are living in a very litigious time. Everyone is suing everyone else. I am not very impressed by frivalous law suits. However, it is obvious that thousands of people have been hurt by this EBAY ban of used cloth diapers. Something needs to be done!!