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eBay to pay $59 million settlement over allegations of selling drug-making equipment

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eBay has agreed to pay $59 million (£46.3 million) to settle allegations of selling equipment capable of manufacturing illegal drugs.

The US Justice Department claimed that eBay facilitated the sale of thousands of pill presses and encapsulating machines, which were later used by individuals convicted of drug-related offenses.

These machines can be utilized to produce counterfeit pills, including those containing fentanyl, amidst a widespread opioid crisis in many US states.

Associate Attorney General Vanita Gupta emphasized the severity of the issue, stating, “Counterfeit pills laced with fentanyl are a significant contributor to the deadly overdose epidemic,” and affirmed the department’s commitment to enforcing laws governing the sale of pill-making equipment.

The allegations revolved around eBay’s purported failure to comply with the Controlled Substances Act (CSA), which mandates strict record-keeping and reporting to the Drug Enforcement Administration.

The department highlighted the capability of the pill presses sold on the platform to produce thousands of pills per hour, along with the sale of encapsulating machines.

While denying the allegations, eBay settled the case to avoid litigation costs. As part of the settlement, the company pledged to take additional measures to ensure compliance with the CSA.

eBay

In its investigation, the US government discovered that many customers who bought pill presses also acquired counterfeit moulds, stamps, or dyes for producing counterfeit pharmaceuticals.

According to the US Centers for Disease Control, drug overdoses claimed the lives of over 110,000 individuals in the US in 2022, with synthetic opioids like fentanyl being responsible for the majority of deaths.

The city of Portland recently declared a state of emergency due to the widespread use of fentanyl, highlighting the urgency of addressing the issue.

Source-BBC

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