eBay paid $59 million over thousands of pill presses and encapsulating machines sold through its website

Summary

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