eBay has agreed to pay a $3 million fine in restitution to settle a previous harassment case related to a 2019 stalking and harassment campaign against a Massachusetts couple. The stalking campaign was carried out by multiple eBay employees, some of them executives, who targeted the couple after they published articles critical of the e-commerce giant. The harassment campaign involved employees sending couples a blood-stained pig mask, a pig embryo, a funeral wreath, live insects and a book about widowhood.
The U.S. Attorney's Office for the District of Massachusetts announced the fine Thursday and revealed that the company committed six felonies. eBay was charged with two counts of stalking through interstate travel, two counts of stalking through electronic communications services, one count of interfering with witness testimony and one count of obstruction of justice. eBay admitted that former safety and security director Jim Baugh and six other members of the company's security team engaged in a harassment campaign targeting the couple after they posted articles about eBay sellers.
Baugh and other employees also went to the couple's home and installed a GPS tracking device on their car. They also posted ads on Craigslist, inviting the public to the victims' homes to conduct sex trafficking. In addition, employees sent private Twitter messages and public tweets to harass them. Baugh was sentenced to 57 months in prison in September 2022, while six other employees received sentences ranging from two years in prison to house arrest.
Executive U.S. Attorney Joshua S. Levy said at a news conference: "eBay engaged in absolutely horrific, criminal conduct. The company's employees and contractors participated in this activity and subjected the victims to pure hell. It was a never-ending nightmare filled with intimidation and criminal behavior. The goal is to silence them and protect the eBay brand. We work tirelessly in our mission to hold everyone responsible for criminal conduct. In addition to paying the fine, eBay is required to hire an independent corporate compliance monitor for three years and make significant improvements to its compliance program."
eBay CEO's response
In today's press release, eBay said it takes responsibility for the former employee's misconduct. "The company's actions in 2019 were wrong and reprehensible," eBay CEO Jamie Iannone said in a press release. "Ebay has fully cooperated with law enforcement since eBay first learned of the 2019 incident. We are deeply sorry for everything the Steiners suffered. Since the incident, new leadership has joined the company, and eBay has strengthened its policies, procedures, controls and training."
The incident has raised widespread concerns about corporate ethical responsibilities and the oversight of employee behavior. Businesses must ensure that their employees not only comply with the law but also adhere to basic ethical standards. Punishment for these crude and criminal acts is necessary, and a thorough review of the corporate supervision mechanism is also needed.
For the victim couple, it was a horrific ordeal. They should know that society as a whole is shocked and guilty about what happened to them. In addition, they have the right to pursue claims through legal means and obtain compensation for their pain and suffering.