EBay agreed to pay $59 million and strengthen its compliance program to resolve Justice Department allegations that it did not do enough to stop criminals from buying counterfeit drug manufacturing equipment.
Wednesday payment is the first case the Justice Department has brought against an e-commerce company for violating the federal Controlled Substances Act, which regulates the manufacturing and distribution of pharmaceuticals.
This arose after eBay monitored thousands of tablet presses and encapsulation machines sold through the website.
The Justice Department said criminals could use pill presses and encapsulation machines to illegally manufacture counterfeit pills, including the fentanyl-laced pills that fueled the nation’s opioid epidemic.
eBay was accused of failing to comply with record-keeping and reporting requirements to the U.S. Drug Enforcement Administration, including verifying the identity of buyers, for equipment such as presses that can produce thousands of pills per hour.
According to the Department of Justice, many of the pill press buyers were later charged with drug-related crimes.
“Fentanyl packed in fake pills disguised as real prescription drugs is killing Americans,” DEA Administrator Ann Milgram said in a statement. “EBay and other e-commerce platforms must do their part to protect the public.”
eBay did not respond to a request for comment.
