The Department of Justice sued eBay on Wednesday for allegedly allowing the sale of several harmful products like pesticides and motor vehicle emission-evading devices.
The complaint against the marketplace was filed on behalf of the Environmental Protection Agency (EPA) in federal court in Brooklyn, New York. The lawsuit accused eBay of violating the Clean Air Act, the Toxic Substances Control Act, and other environmental regulations.
The San Jose, California-based company could face billions of dollars in penalties, including up to $5,580 for each Clean Air Act violation, according to the government’s complaint.
The complaint claims eBay sold, offered for sale, or caused the sale of more than 343,000 aftermarket devices that try to evade motor vehicle emissions controls.
It also alleges the company unlawfully distributed or sold “at least 23,000 unregistered, misbranded, or restricted-use pesticide products, even in violation of a stop sale order EPA issued to eBay in 2020 and amended in 2021.”
The Justice Department said that the pesticides include a high toxicity insecticide banned in the United States, a restricted use pesticide that only certified applicators may apply and a product falsely claiming to protect users against the virus that causes COVID-19.
The complaint also alleges the e-commerce giant distributed more than 5,600 painting and coating removal products that include methylene chloride, a potentially lethal chemical linked to brain and liver cancer and non-Hodgkin lymphoma.
“eBay’s sale of emission control defeat devices, pesticides, and other unsafe products poses unacceptable risks to our communities disproportionately impacted by environmental and health hazards,” U.S. Attorney Breon Peace said in a statement. “Together with our partners, this office will vigorously enforce federal law against those whose conduct endangers public health and the environment.”
In a statement, eBay called the lawsuit “entirely unprecedented” and said it would “vigorously defend itself.”
“We dedicate significant resources, implement state-of-the-art technology and ensure our teams are properly trained to prevent prohibited items from being listed on the marketplace,” the company said in a prepared statement.
“Indeed, eBay is blocking and removing more than 99.9 percent of the listings for the products cited by the DOJ, including millions of listings each year. And eBay has partnered closely with law enforcement, including the DOJ, for over two decades on identifying emerging risks and assisting with prevention and enforcement.”
The EPA has previously issued orders against eBay. In 2021, the agency ordered the company to stop selling 170 unregistered and misbranded pesticide products.
The United States has targeted sales of toxic materials before. In 2018, the EPA announced a $1.2 million settlement with Amazon over the sale and distribution of illegal pesticides.
Federal regulators said at the time that the agreement settled allegations that the Seattle-based e-commerce giant committed nearly 4,000 violations between 2013 and 2016 for selling and distributing imported pesticide products not licensed for sale in the United States.
The EPA issued a “stop-sale” order in 2021 requiring Amazon to take down listings for dozen of products the agency said posed a health risk to people and pets exposed to the products, The Seattle Times reported.
The EPA also ordered Amazon and eBay to stop selling a variety of pesticide products in June 2020 that included some that falsely claimed to provide protection against the coronavirus.
