EBay will pay $59 million settlement over pill presses sold online as US undergoes overdose epidemic

Source: Associated Press

WASHINGTON (AP) — The e-commerce giant eBay will pay $59 million in a settlement with the Justice Department over thousands of pill press machines sold on the the platform.

The machines can be used to manufacture counterfeit pills that look just like prescription pills but instead can be laced with substances like fentanyl, a synthetic opioid drug that is largely fueling the deadliest overdose crisis in U.S. history, according to the Justice Department. The company did not immediately respond to a request for comment.

Sellers of pharmaceutical manufacturing equipment are required to verify buyers’ identities, keep records, and report to the Drug Enforcement Administration to make sure the machines are traceable and not used illegally.

The Justice Department says eBay, which provides a platform for people to make online sales, failed to meet those requirements for thousands of pill presses and pill-filling encapsulating machines, including high-capacity pill presses capable of producing thousands of pills per hour.

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BY LINDSAY WHITEHURST
Updated 10:58 AM EST, January 31, 2024


Read more: https://apnews.com/article/ebay-fentanyl-counterfeit-pills-4ac038b546bee74133b2a47756bb060f

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Source: U.S. Attorney's Office, District of Vermont

eBay to Pay $59 Million to Settle Controlled Substances Act Allegations Related to Pill Presses Sold Through its Website

Wednesday, January 31, 2024
For Immediate Release
U.S. Attorney's Office, District of Vermont

Fourth-Largest Controlled Substances Act Settlement in History; First Controlled Substances Act Settlement with an E-Commerce Company

Burlington, Vermont – eBay Inc, an e-commerce company headquartered in San Jose, California, has agreed to pay $59 million and to enhance its compliance program to resolve allegations that it violated the Controlled Substances Act (CSA) in connection with thousands of pill presses and encapsulating machines that were sold through its website.

Pill presses and encapsulating machines can be used by criminals to manufacture illegal drugs. When used with a mold, stamp, or die mimicking commonly prescribed controlled substances, pill presses are capable of producing counterfeit pills that appear indistinguishable from legitimate pharmaceutical drugs, including pills that are sometimes laced with fentanyl.

The CSA regulates certain pharmaceutical manufacturing equipment, including pill presses and encapsulating machines, by requiring identity verification of purchasers, record-keeping, and reporting to the Drug Enforcement Administration. These requirements are designed to prevent individuals who intend to use these machines illegally from obtaining them and to ensure that the machines are traceable to the end user.

The United States alleged that eBay did not comply with these CSA requirements for thousands of pill presses and encapsulating machines that were sold through its website, including high-capacity pill presses capable of producing thousands of pills per hour. The United States’ investigation further found that hundreds of eBay’s pill press buyers also purchased counterfeit molds, stamps, or dies, allowing them to produce pills that mimicked the products of legitimate pharmaceutical companies, and that many of eBay’s pill press buyers have been successfully prosecuted in connection with trafficking illegal counterfeit pills.

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Read more: https://www.justice.gov/usao-vt/pr/ebay-pay-59-million-settle-controlled-substances-act-allegations-related-pill-presses