eBay Inc. Rotten Score Breakdown

eBay Inc. agreed in January 2024 to pay $59 million and strengthen its compliance program to resolve federal allegations involving thousands of pill presses and encapsulating machines sold through its online marketplace. The Justice Department alleged that eBay violated the Controlled Substances Act in connection with sales of the equipment through its website. Pill presses and encapsulating machines can have legitimate uses but can also be used to manufacture illegal drugs. When combined with molds, stamps or dies resembling legitimate pharmaceutical products, pill presses can be used to manufacture counterfeit tablets that appear similar to prescription medications. The Justice Department noted that counterfeit pills manufactured using such equipment may contain fentanyl and other dangerous controlled substances. Federal law imposes reporting and recordkeeping obligations concerning certain regulated machines. The government alleged that thousands of pill presses and encapsulating machines were sold through eBay's website in circumstances giving rise to violations of those requirements. eBay agreed to pay $59 million to resolve the allegations. The Justice Department described the resolution as the fourth-largest Controlled Substances Act settlement in history and the first CSA settlement with an e-commerce company at the time. eBay also agreed to maintain and enhance compliance measures relating to prohibited and restricted products, including pill presses, encapsulating machines, counterfeit molds, stamps and dies. The claims resolved through the settlement were allegations only, and there was no determination of liability. This case is separate from eBay's 2024 criminal resolution concerning the corporate cyberstalking campaign already represented in Rotten Company. Primary source: U.S. Department of Justice — eBay to Pay $59 Million to Settle Controlled Substances Act Allegations Related to Pill Presses Sold Through its Website: https://www.justice.gov/archives/opa/pr/ebay-pay-59-million-settle-controlled-substances-act-allegations-related-pill-presses-sold

eBay Inc. entered a deferred prosecution agreement with federal prosecutors in January 2024 and agreed to pay a $3 million criminal penalty for a corporate harassment and intimidation campaign targeting a Massachusetts couple who published an online newsletter covering eBay. The criminal case arose from conduct carried out in August 2019 by eBay employees and contractors. Federal prosecutors charged eBay with two counts of stalking through interstate travel, two counts of stalking through electronic communications services, one count of witness tampering and one count of obstruction of justice. As part of the deferred prosecution agreement, eBay admitted to a detailed statement of facts concerning the conduct. The harassment campaign included threatening and disturbing communications and deliveries directed at the couple, surveillance of their home and efforts to intimidate them in retaliation for their reporting about eBay. The criminal resolution also addressed obstruction of the investigation that followed. eBay agreed to pay a $3 million criminal penalty, which DOJ stated was the statutory maximum fine for the six felony offenses charged against the company. The company also agreed to retain an independent corporate compliance monitor for three years and implement extensive enhancements to its compliance program. Primary sources: U.S. Attorney's Office, District of Massachusetts — eBay Inc. to Pay $3 Million in Connection with Corporate Cyberstalking Campaign: https://www.justice.gov/usao-ma/pr/ebay-inc-pay-3-million-connection-corporate-cyberstalking-campaign-targeting DOJ case page — United States v. eBay, Inc.: https://www.justice.gov/usao-ma/case/us-v-ebay-inc