E-commerce giant eBay has agreed to pay $3 million to settle a U.S. criminal probe related to a campaign orchestrated by several of its employees targeting a Massachusetts couple. The couple’s online newsletter, which was critical of eBay, prompted a relentless campaign of stalking and harassment.
Federal prosecutors in Boston revealed that seven former eBay workers participated in an extensive campaign in 2019. The actions included sending the couple cockroaches, fly larvae, and a bloody Halloween pig mask. eBay has entered into a deferred prosecution agreement, admitting to its conduct and agreeing to specific measures.
Acting U.S. Attorney Joshua Levy stated, “The company’s employees and contractors involved in this campaign put the victims through pure hell, in a petrifying campaign aimed at silencing their reporting and protecting the eBay brand.”
As part of the settlement, eBay will retain an independent corporate compliance monitor for three years and make changes to its compliance program. Charges against the company will be dropped after three years if it complies with the terms of the deal.
EBay CEO Jamie Iannone acknowledged the company’s wrongdoing, calling the conduct in 2019 “wrong and reprehensible.” He emphasized eBay’s commitment to upholding high standards of conduct and ethics.
Prosecutors revealed that senior executives considered the couple’s newsletter critical of eBay. In August 2019, then-CEO Devin Wenig texted another executive that it was time to “take her down,” referring to Ina Steiner, one of the victims.
Wenig, who was not charged, stepped down as eBay’s CEO in September 2019. Jim Baugh, a former CIA employee and eBay’s senior director of safety and security, oversaw the harassment campaign. Baugh was sentenced to 57 months in prison in September 2022.
The victims, David and Ina Steiner, operate the newsletter EcommerceBytes. Their lawsuit against eBay remains pending, with the trial set for March 2025. The Steiners expressed their determination to safeguard First Amendment rights and ensure corporations cannot suppress individuals through harassment.
