eBay to Pay $59M Over Sales of Drug-Making Tools

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Facts

• Online auction site eBay on Wednesday announced a $59M settlement with the US Dept. of Justice (DOJ) over allegations eBay violated the Controlled Substances Act (CSA) by allowing the sale of thousands of pill presses and encapsulating machines on its website.¹
• The government had also accused eBay of allowing the sale of counterfeit molds, stamps, and dies that are used to mimic real pharmaceuticals. In the settlement, eBay denied that it was subject to the CSA and didn't admit liability.¹
• The pill presses being sold on eBay are capable of making thousands of pills per hour, with the encapsulators able to pack powder into the pill capsules. The DOJ said hundreds of customers bought the counterfeit molds and stamps.²
• As these products are used by criminal drug makers, the DOJ argued that eBay violated the CSA by not verifying the identities of the buyers, not keeping proper records, and not reporting any of the transactions to the US Drug Enforcement Administration.³
• As part of the settlement, eBay also agreed to maintain and enhance its compliance program regarding its prohibited and restricted items policy.⁴
• This settlement comes as 2022 statistics show drug overdoses accounted for 110K deaths in the US, two-thirds of which were due to synthetic opioids such as fentanyl. This week, Portland, Ore., declared a state emergency over its drug crisis, which has been largely caused by fentanyl.²

Sources: ¹wsj.com, ²BBC News, ³Reuters.com and ⁴ABC News.

Narratives

• Narrative A, as provided by United States Department of Justice. eBay chose to settle this case because it knew it had violated several government regulations, in particular the CSA. Hopefully, this financial penalty will deter the e-commerce giant from ever placing these items for sale again.
• Narrative B, as provided by ebayinc.com. This settlement isn't an admission of guilt, but a way to avoid the cost of a lengthy legal battle. eBay continues to have a positive history of working voluntarily with law enforcement to take such products off its site. Customers can rest assured eBay will continue to provide safe and customer-focused service.