EBay has agreed to pay a settlement of $59 million for the sale of pill presses on their website amidst the ongoing overdose epidemic in the US.
The Justice Department announced on Wednesday that eBay, a major online retailer, has agreed to pay $59 million as part of a settlement for selling thousands of pill press machines on their platform.
The machines have the ability to produce fake pills that closely resemble legitimate prescription pills, but may contain dangerous additives such as fentanyl – a synthetic opioid responsible for the deadliest overdose epidemic in U.S. history.
The Justice Department stated that the company did not properly verify the identities of buyers and failed to maintain necessary records according to the law. As a result, numerous individuals who purchased pill presses on eBay have faced prosecution for their involvement in distributing illegal counterfeit pills.
eBay, based in San Jose, California, offers a platform for individuals to conduct their own online sales. The company stated that it reached a settlement in order to avoid ongoing legal disputes, but maintains that it did not violate any laws.
Before the Justice Department intervened, the company stated that it had independently removed pill-making equipment and prevented “tens of thousands” of listings.
According to eBay, government officials have consistently praised our collaboration with law enforcement and our dedication to aiding in investigations related to the unlawful use of pill presses.
However, the Department of Justice reports that numerous instances occurred where individuals purchased pill presses through eBay. These presses were often high-capacity and could produce thousands of pills in an hour. Additionally, it was found that hundreds of these buyers received fake molds or dies, which enabled them to create counterfeit prescription pills.
According to federal prosecutors, Ebay did not comply with the regulations for sellers of pharmaceutical manufacturing equipment. These regulations include verifying buyers’ identities, maintaining records, and reporting to the Drug Enforcement Administration in order to ensure that the machines are traceable and not being used for illegal purposes.
Associate Attorney General Vanita Gupta stated that fake pills containing fentanyl are a major factor in the fatal overdose crisis.
In 2022, the U.S. Centers for Disease Control and Prevention reported that drug overdoses were responsible for more than 100,000 fatalities. The majority of these cases, approximately two-thirds, involved fentanyl or other synthetic drugs. The initial focus of the crisis was on prescription painkillers, which became more widely used in the 1990s, and then shifted to heroin. However, in recent years, there has been a significant increase in deaths due to synthetic opioids like fentanyl, which are often found in illicit drugs.
U.S. Attorney Nikolas Kerest of Vermont stated that eBay’s website has simplified the process of obtaining dangerous machinery, commonly used for creating fake pills, for individuals all over the nation.
The company has decided to enhance its compliance program for the distribution of pill presses, as well as for fake molds, stamps, and dies, and encapsulating machines, which are utilized for filling pills.
According to U.S. Attorney Henry Leventis for the Middle District of Tennessee, eBay’s neglect of essential reporting and record keeping regulations enabled individuals to establish illegal pill manufacturing operations in their own homes without being caught.