In a significant development, eBay has agreed to pay a $3 million fine to settle a U.S. criminal investigation related to a disturbing harassment campaign orchestrated by its employees against a Massachusetts couple. The couple, David and Ina Steiner, operates the online newsletter EcommerceBytes, known for its critical stance on eBay. The extensive campaign in 2019 involved sending disturbing items such as cockroaches, fly larvae, and a bloody Halloween pig mask.
Federal prosecutors in Boston announced on Thursday that eBay entered a deferred prosecution agreement after seven former employees admitted to their involvement. The resolution includes a $3 million fine, the maximum penalty for charges including stalking, obstruction of justice, and witness tampering.
As part of the agreement, eBay acknowledged the facts surrounding its conduct and committed to a three-year association with an independent corporate compliance monitor. The company will also implement changes to its compliance program. Charges will be dropped after three years if eBay complies with the terms.
eBay CEO Jamie Iannone condemned the company’s 2019 conduct as «wrong and reprehensible» and expressed eBay’s commitment to high standards of conduct and ethics. The resolution comes after former CEO Devin Wenig texted an executive in 2019 to «take her down,» referring to Ina Steiner. Wenig, not charged, denies knowledge of employee actions.
Jim Baugh, eBay’s senior director of safety and security at the time, oversaw the harassment campaign and was sentenced to 57 months in prison in 2022. The Steiners’ lawsuit against eBay is pending, with a trial scheduled for March 2025. The couple is determined to protect individuals’ First Amendment rights from corporate suppression.
