eBay has agreed to pay a $3 million settlement as a result of a 2019 cyberstalking campaign aimed at a Massachusetts couple critical of the e-commerce platform. The US Department of Justice announced six felony charges against eBay, including stalking, witness tampering, and obstruction of justice. The cyberstalking campaign involved seven eBay employees, some of whom were executives, targeting Ina and David Steiner with online threats and sending disturbing items to their home. The charges resulted in prison sentences for two former eBay employees in 2022, while the remaining five faced charges.
The Department of Justice’s deferred prosecution agreement with eBay includes a $3 million payment and mandates the retention of a corporate compliance monitor for three years, along with substantial enhancements to eBay’s compliance program. In response, eBay acknowledged the wrongdoing of its former employees, expressing regret and committing to upholding high standards of conduct and ethics. eBay CEO Jamie Iannone stated that the company cooperated fully with law enforcement and is dedicated to making amends with the victims. However, this settlement might not mark the end of eBay’s legal challenges, as the Steiners, the targeted couple, sued eBay and its former CEO Devin Wenig in 2021, claiming the company engaged in a campaign to intimidate and silence them. A judge ruled in December that the couple’s case can proceed.
The cyberstalking scandal revealed an alarming level of misconduct within eBay, with employees going to extreme lengths to harass and intimidate the Steiners for their critical coverage of the platform. The settlement and charges underscore the severity of the actions taken by eBay employees and the legal consequences the company now faces. The deferred prosecution agreement, with its financial penalty and compliance requirements, serves as a significant response by the Department of Justice to address the criminal conduct within the e-commerce giant. The legal proceedings are likely to continue, adding another layer of complexity to eBay’s efforts to recover from the fallout of the cyberstalking scandal.
