E-commerce giant eBay has agreed to a $59 million settlement with the Justice Department following an investigation into the sale of thousands of pill press machines on its platform.
The pill press machines in question can be utilized to manufacture counterfeit pills that closely resemble prescription medications, potentially containing dangerous substances like fentanyl.
Accusations of Enabling Illegal Pill Press Sales
The Justice Department accused eBay of failing to verify buyers’ identities and neglecting to maintain necessary records, leading to numerous instances of individuals purchasing pill presses on the platform and subsequently facing prosecution for involvement in trafficking illegal counterfeit pills.
The machines obtained through eBay were reportedly used to produce counterfeit pills that mimicked legitimate prescription medications.
eBay, headquartered in San Jose, California, acknowledged the settlement to avoid prolonged litigation but asserted that it did not violate any laws. The company claimed to have voluntarily removed pill-making equipment and blocked “tens of thousands” of listings even before the Justice Department intervened.
Despite eBay’s proactive measures, the Justice Department highlighted thousands of instances where individuals purchased pill presses on the platform, including high-capacity machines capable of producing thousands of pills per hour.
Additionally, hundreds of buyers reportedly acquired counterfeit molds or dies, enabling them to manufacture pills resembling legitimate prescription medications.
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eBay Settles Charges
The company was found to be in violation of requirements for sellers of pharmaceutical manufacturing equipment, failing to verify buyers’ identities, keep necessary records, and report to the Drug Enforcement Administration to ensure the traceability and legal use of the machines.
Associate Attorney General Vanita Gupta emphasized the role of counterfeit pills laced with fentanyl as a significant contributor to the ongoing overdose epidemic. Over 100,000 deaths in 2022 were linked to drug overdoses, with more than two-thirds involving fentanyl or similar synthetic drugs.
US Attorney Nikolas Kerest of Vermont stated that eBay’s website facilitated the nationwide acquisition of dangerous machines used in the production of counterfeit pills.
As part of the settlement, eBay has committed to enhancing its compliance program regarding the sale of pill presses, as well as counterfeit molds, stamps, dies, and encapsulating machines.
US Attorney Henry Leventis for the Middle District of Tennessee criticized eBay for its failure to adhere to basic reporting and record-keeping requirements, allowing individuals to establish illicit pill factories undetected in their homes.
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