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eBay has agreed to pay a $59M settlement for selling equipment used to make drugs, despite denying any wrongdoing.
The company was accused of violating the Controlled Substances Act, as pill presses and other drug-making tools were sold on its platform.
Amidst a rising drug crisis in the US, eBay has pledged to comply with regulations to maintain a safe marketplace.

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Although eBay denied allegations, the company chose to settle the case to avoid litigation costs

eBay to pay $59M settlement for selling drug-making equipment

By Pratyaksh Srivastava

Feb 01, 2024

02:24 pm

What's the story

eBay has agreed to pay $59 million to settle a lawsuit accusing it of selling equipment used for making narcotic drugs. The US Justice Department alleged that the online marketplace sold thousands of pill presses and encapsulating machines, some of which ended up in the hands of individuals convicted of drug-related crimes. These devices can be used to create counterfeit pills, including those containing the dangerous fentanyl. This settlement comes as several US states continue to battle ongoing opioid crises.

The charge

eBay failed to comply with Controlled Substances Act

eBay was charged for not adhering to the Controlled Substances Act (CSA), which requires companies to keep detailed records and report them to the Drug Enforcement Administration. Federal prosecutors revealed that pill presses sold on eBay can produce thousands of pills per hour. The company also sold machines which pack powder into capsules. Hundreds of customers who bought pill presses through eBay also purchased counterfeit stamps and dyes for creating fake pills, the US government's investigation revealed.

Will comply with CSA

eBay denies wrongdoing, pledges compliance

Although eBay denied allegations, the company chose to settle the case to avoid litigation costs and pledged to take further steps to comply with the CSA. In a statement, eBay said, "Maintaining a safe and trusted marketplace for our global community of sellers and buyers is a fundamental principle of our business." Associate Attorney General Vanita Gupta stressed that counterfeit pills laced with fentanyl are a significant contributor to the deadly overdose epidemic in the US.

Drug crisis in US

More than 110,000 deaths in US attributed to drug overdose

Overdosing on psychoactive drugs claimed the lives of more than 110,000 Americans in 2022 as per US Centers for Disease Control. More than 66% of these deaths were attributed to fentanyl and related synthetic opioids. On Tuesday, Oregon's largest city of Portland declared a state of emergency pertaining to the widespread abuse of fentanyl drug.