What happens if the users are the ones that moderate to include only the libellous content, per the GP’s example? Is the provider then responsible for that in this world where more moderation = more liability? Do the volunteer moderators become the liable parties instead? What if a user is also an employee of the company, does that make the company liable again?

While I like the idea of self-policing communities, it doesn’t always work so well in reality (Slashdot’s comment voting system was great at burying bad content during the site’s heyday—though it never eliminated it—now it works pretty poorly because most of the audience has shifted away. Reddit’s subreddit moderation system can be great, except for the racism[0].)

This seems to me like a poorly thought through solution and I’m not really sure what the goal is.

[0] https://www.theatlantic.com/technology/archive/2020/06/reddi...