EBay trades lower after being accused of environmental violations in DOJ lawsuit
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The Department of Justice filed a complaint against eBay Inc. (NASDAQ:EBAY) on Wednesday for unlawfully selling and distributing hundreds of thousands of products in violation of the Clean Air Act, the Federal Insecticide, Fungicide, and Rodenticide Act, and the Toxic Substances Control Act. The complaint was filed on behalf of the U.S. Environmental Protection Agency in federal court in Brooklyn.
The complaint alleges that eBay (EBAY) sold, offered for sale or caused the sale of more than 343K aftermarket defeat devices, which defeat motor vehicle emission controls, a violation of the CAA. Aftermarket defeat devices significantly increase pollution emissions â including carbon monoxide, nitrogen oxides, particulate matter and nonmethane hydrocarbons â that harm public health and impede efforts by the EPA, states, Tribes and local agencies to plan for and attain air quality standards.
The complaint also alleges that eBay has violated FIFRA by unlawfully distributing or selling at least 23K 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. Examples cited included a high toxicity insecticide banned in the United States, restricted use pesticides that only certified applicators may apply and products fraudulently claiming to protect users against the SARS-CoV-2 virus.
Following the filing of the complaint, eBay (EBAY) called the government's actions unprecedented and issued its own statement.
"Maintaining a safe and trusted marketplace for our global community of sellers and buyers is a fundamental principle of our business at eBay. 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. Indeed, eBay is blocking and removing more than 99.9% 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 San Jose-based company said it plans to vigorously defend itself.
Shares of eBay (EBAY) fell 1.71% in late morning trading.

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