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eBay will pay $59 million to settle pill presses case

By Nithya Bose in Business News, posted February 1, 2024

eBay has agreed to pay $59 million to settle allegations by the US government over pill presses.

The lawsuit claims its online platform facilitated the sale of thousands of pill presses and encapsulating machines, potentially breaching the Controlled Substances Act.

The Justice Department announced that eBay will upgrade its compliance measures as part of the settlement.

Several consumers of pill presses on eBay also bought counterfeit molds and stamps, which are used to manufacture pills resembling those from legitimate pharmaceutical companies.

Many of these buyers have been prosecuted for trafficking counterfeit pills.

In the settlement, eBay did not acknowledge any liability nor concede to the government's claim it falls under the purview of the Controlled Substances Act.

The company said it had already started removing listings for products used in making counterfeit pills before the Justice Department initiated contact.

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eBay said: “Government officials have repeatedly commended eBay for our partnership with law enforcement and efforts to support investigations into illegal pill press usage.”

It opted for the settlement to protect shareholder interests and to avoid the expense and distraction of potential litigation.

The Justice Department has described this agreement as its fourth-largest settlement related to the Controlled Substances Act and its first with an e-commerce platform.

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