EBay Hit with $3M Penalty for Harassing Newsletter Couple

• eBay fined $3 million for harassing a couple.
• Seven ex-eBay staff admit to a 2019 harassment campaign.
• eBay admits guilt, commits to changes for charge dismissal.

eBay has agreed to pay a $3 million penalty to settle a U.S. criminal probe related to a disturbing campaign orchestrated by its employees against a Massachusetts couple. The victims, David and Ina Steiner, who run the online newsletter EcommerceBytes, were targeted for their critical coverage of the e-commerce giant.

The criminal conduct, which occurred in 2019, involved a group of seven former eBay workers who admitted to engaging in an extensive and alarming campaign. Tactics included sending the Steiners cockroaches, fly larvae, and a bloody Halloween pig mask. This campaign was described by federal prosecutors in Boston as a “petrifying” effort to silence the couple’s reporting and protect eBay’s brand.

As part of the resolution, eBay entered into a deferred prosecution agreement, admitting to the facts surrounding the case. The company has committed to retaining an independent corporate compliance monitor for three years and making changes to its compliance program. If eBay complies with the terms of the agreement over the next three years, the charges will be dropped.

Acting U.S. Attorney Joshua Levy expressed the severity of the situation, stating, “The company’s employees and contractors involved in this campaign put the victims through pure hell.” He emphasized the campaign’s aim to stifle criticism and safeguard eBay’s reputation.

eBay CEO Jamie Iannone acknowledged the wrongdoing, describing the company’s conduct in 2019 as “wrong and reprehensible.” Iannone affirmed eBay’s commitment to upholding high standards of conduct and ethics.

Notably, senior executives, including former CEO Devin Wenig, were implicated in the case. Wenig allegedly texted another executive in August 2019, expressing the need to “take her down,” referring to Ina Steiner. However, Wenig was not charged, and his spokesperson maintained that he had no knowledge of the actions taken by eBay’s employees.

The orchestrated harassment was overseen by Jim Baugh, a former CIA employee serving as eBay’s senior director of safety and security at the time. Baugh directed the distribution of anonymous harassing messages, disturbing deliveries to the Steiners’ home, and even attempted surveillance.

The Steiners filed a lawsuit against eBay, which is set for trial in March 2025. In their statement, the couple expressed their determination to ensure that no corporation can infringe upon an individual’s First Amendment rights with impunity.

The $3 million penalty represents the maximum prosecutors could seek after charging eBay with six counts, including stalking, obstruction of justice, and witness tampering, describing the conduct as “absolutely horrific.” The case sheds light on the potential consequences corporations may face for attempting to silence critics through illicit means.

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