The federal government has taken legal action against eBay, alleging that the online platform has violated the Clean Air Act and other environmental laws. The government’s complaint, filed in federal court in Brooklyn, NY, suggests that eBay could face significant penalties, potentially amounting to billions of dollars. Each violation of the Clean Air Act alone could lead to a penalty of up to $5,580, according to the complaint.
The Department of Justice claims that eBay has allowed the sale of over 343,011 aftermarket “defeat” devices that enable vehicles to generate more power and achieve better fuel economy by circumventing emissions controls. Additionally, eBay is accused of permitting the sale of around 23,000 pesticides that are either unregistered, misbranded, or restricted, which goes against a “stop sale” order issued by the Environmental Protection Agency in 2020. The company is further alleged to have distributed 5,614 paint and coating removal products containing methylene chloride, a dangerous chemical associated with brain and liver cancer, as well as non-Hodgkin lymphoma.
If found guilty, eBay could potentially face penalties amounting to billions of dollars. The Department of Justice highlights that eBay possesses the necessary power, authority, and resources to prevent the sale of these unlawful and harmful products on its platform, yet it has chosen not to do so.
In response, eBay has issued a statement describing the lawsuit as “entirely unprecedented” and expressing its intention to vigorously defend itself. The company emphasizes its commitment to upholding a safe and trusted marketplace for its global community of buyers and sellers and claims to block and remove over 99.9% of listings for the products cited in the complaint, which amounts to millions of listings annually.
As a result of the lawsuit, eBay’s shares dropped by 2% on Wednesday.
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