eBay Settles U.S. Stalking Case with $3 Million Penalty, Admits to "Wrong and Reprehensible" Conduct

eBay Inc. has reached a settlement agreement to pay a $3 million fine to resolve a U.S. criminal investigation into the harassment of David and Ina Steiner, a Massachusetts couple who published an online newsletter critical of the company's practices. In a stark acknowledgment of misconduct, eBay has entered into a deferred prosecution agreement that reflects a series of dark corporate intimidation tactics employed by several former employees in 2019.

Federal prosecutors in Boston announced eBay's agreement on Thursday, outlining the extensive harassment campaign aimed at the couple. The tactics included the disturbing delivery of items such as cockroaches, fly larvae, and a bloody Halloween pig mask to the Steiners’ home. This aggressive response was triggered by the couple’s newsletter, EcommerceBytes, which frequently scrutinized eBay's business approach and operations.

Seven ex-eBay employees have admitted to partaking in the reprehensible activities that Federal prosecutors have described as "absolutely horrific" criminal conduct. These actions led eBay to face six counts, including stalking, obstruction of justice, and witness tampering. The $3 million fine corresponds with the maximum penalty the prosecutors could pursue under these charges.

In a powerful act of reckoning, the San Jose, California-based eBay has admitted to the factual basis of its conduct while committing to a three-year oversight by an independent corporate compliance monitor. The agreement stipulates that if eBay adheres to its obligations, the charges will eventually be dropped.

eBay's newly appointed CEO, Jamie Iannone, has publicly condemned the company's actions during this period as "wrong and reprehensible," emphasizing eBay's dedication to maintaining high ethical standards and rectifying the situation with the Steiners.

The psychological terror campaign can be traced back to messages from former CEO Devin Wenig, who allegedly incited the harassment with a message to "take her down," referring to Ina Steiner. Although Wenig has since resigned from his position and was not charged — claiming ignorance of the actions — the implications have been far-reaching.

The operation, led by eBay’s former senior director of safety and security Jim Baugh, involved not only invasive online harassment through Twitter messages and emails but also physical surveillance. Baugh, along with other eBay associates, even attempted to plant a GPS tracking device on the couple's vehicle. Baugh has already faced the judicial system, being sentenced in September 2022 to 57 months in prison, with others involved receiving sentences ranging from home confinement to two years.

The ongoing legal battle is not yet over for eBay; the Steiners’ civil lawsuit is pending and scheduled for trial in March 2025. Unwavering in their pursuit of justice, the Steiners have expressed their resolve to fight corporate abuse of power and uphold the sanctity of First Amendment rights.

As eBay aims to recover from this scandal and reinstate trust among its users, the unseemly episode serves as a crucial case study in the perils of corporate overreach and the indomitable strength of individuals fighting against suppression.