eBay to Pay $3 Million Penalty in Criminal Case Over Harassment Campaign

Online retailer eBay Inc. has agreed to pay a $3 million penalty to settle criminal charges related to a harassment campaign against a Boston couple, Ina and David Steiner, who run a website critiquing the company. Several eBay employees engaged in a months-long campaign of stalking and harassment after the Steiners published criticisms of eBay on their e-commerce news site, EcommerceBytes.
The harassment campaign included mailing disturbing items to the Steiners' home, such as a fetal pig, a bloody pig mask, live insects, a book on surviving the death of a spouse, and a funeral wreath. The co-conspirators also used Craigslist to invite strangers to the couple's home for sexual encounters, sent private and public threats on social media, and threatened to visit them at their home.
eBay was charged with stalking through interstate travel, stalking through electronic communications, witness tampering, and obstruction of justice. The company entered into a deferred prosecution agreement, admitting to the prosecutor's recitation of facts about its conduct. As part of the agreement, eBay will pay a $3 million criminal penalty, hire an independent corporate compliance monitor for three years, and make extensive enhancements to its compliance program.
Seven individuals, former eBay employees or contractors, participated in the harassment campaign and have been convicted. eBay's actions were characterized as "horrific, criminal conduct" by Acting U.S. Attorney for Massachusetts Joshua S. Levy. The Steiners have also filed a civil lawsuit against eBay and the co-conspirators, which remains open in federal court.
The CEO of eBay, James Iannone, stated that the company's conduct in 2019 was "wrong and reprehensible" and emphasized eBay's commitment to upholding high standards of conduct and ethics. The Steiners, in response, expressed determination to push for answers and ensure that corporations cannot infringe on individuals' First Amendment rights. The civil trial is scheduled for May 2025.
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