United States of America: Reached Settlement in DOJ lawsuit against e-commerce platform eBay over violation of Controlled Substances Act

On 31 January 2024, the Department of Justice (DOJ) announced that the e-commerce platform eBay agreed to pay USD 59 million and enhance its compliance program to resolve allegations of violating the Controlled Substances Act (CSA). The allegations were related to the sale of thousands of pill presses and encapsulating machines through its website, which can be used to manufacture illegal drugs. The CSA requires identity verification of purchasers, record-keeping, and reporting to the Drug Enforcement Administration (DEA) for such equipment. The DOJ alleged that eBay did not comply with these requirements and that many of eBay's pill press buyers have been successfully prosecuted in connection with trafficking illegal counterfeit pills. As part of the settlement, eBay has agreed to maintain and enhance its compliance program with respect to its prohibited and restricted items policy as it pertains to sales of pill presses, counterfeit moulds, stamps, dies, and encapsulating machines.