In a significant development, eBay has agreed to pay a $3 million fine, the maximum criminal penalty possible, for orchestrating a harassment campaign against a Massachusetts couple, David and Ina Steiner.
The retaliation stemmed from the couple's critical reporting of eBay in their newsletter, EcommerceBytes, in 2019. Former eBay senior director of safety and security, Jim Baugh, led the 18-day campaign that included menacing and criminal acts, such as sending disturbing deliveries, making threats, and even installing a GPS tracker on the couple's car.
The campaign, initiated by then-CEO Devin Wenig and then-chief communications officer Steven Wymer, aimed to "take down" the Steiners due to their coverage of eBay. The harassment tactics escalated to an "unprecedented stalking campaign," leading to the involvement of local police and the FBI. Seven former eBay employees, including Baugh, were convicted on felony charges, with Baugh receiving a 57-month federal prison sentence.
eBay confirmed its admission of wrongdoing and extended apologies to the Steiners. The company's CEO, Jamie Iannone, acknowledged the reprehensible conduct in 2019 and emphasized eBay's cooperation with law enforcement. As part of the settlement, eBay must retain an independent corporate compliance monitor to prevent a recurrence of such conduct.
All seven former eBay employees have faced legal consequences, with the company charged with multiple counts, entering into a deferred prosecution agreement.
The deferred prosecution agreement mandates eBay's compliance and cooperation with the Department of Justice's terms for three years. If successful, the criminal charges against eBay will be dismissed. The settlement comes during Stalking Awareness Month, with the DOJ expressing hope that the maximum fine will deter similar conduct in the future.
eBay, under new leadership, emphasized its commitment to upholding high standards of conduct and ethics, stating that it has strengthened policies, procedures, controls, and training since the events occurred. The company aims to move forward while making amends with the Steiners.
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