Pill presses and encapsulating machines can be used by criminals to manufacture illegal drugs. When used with a mold, stamp, or die mimicking commonly prescribed controlled substances, pill presses are capable of producing counterfeit pills that appear indistinguishable from legitimate pharmaceutical drugs, including pills that are sometimes laced with fentanyl.
The CSA regulates certain pharmaceutical manufacturing equipment, including pill presses and encapsulating machines, by requiring identity verification of purchasers, record-keeping, and reporting to the Drug Enforcement Administration (DEA). These requirements are designed to prevent individuals who intend to use these machines illegally from obtaining them and to ensure that the machines are traceable to the end user.
The United States alleged that eBay did not comply with these CSA requirements for thousands of pill presses and encapsulating machines that were sold through its website, including high-capacity pill presses capable of producing thousands of pills per hour.
The United States’ investigation further found that hundreds of eBay’s pill press buyers also purchased counterfeit molds, stamps, or dies, allowing them to produce pills that mimicked the products of legitimate pharmaceutical companies, and that many of eBay’s pill press buyers have been successfully prosecuted in connection with trafficking illegal counterfeit pills.
In addition to the monetary settlement, eBay also has agreed to maintain and enhance its compliance program with respect to its prohibited and restricted items policy as it pertains to sales of pill presses, counterfeit molds, stamps, and dies, and encapsulating machines.
The matter was handled by Trial Attorneys Scott B. Dahlquist and Deborah Sohn, Senior Trial Attorney Sarah Williams, Senior Counsel for Policy and Compliance Shannon Pedersen, Senior Deputy Director of Criminal Litigation A.J. Nardozzi, Director Amanda Liskamm, and Deputy Assistant Attorney General Arun G. Rao of the Civil Division’s Consumer Protection Branch, Assistant U.S. Attorneys Kaitlin E. Hazard and Lauren Almquist Lively and Civil Chief Jules Torti for the District of Vermont, and Assistant U.S. Attorney Wynn Shuford, Deputy Civil Chief Ellen Bowden McIntyre, and Executive Assistant U.S. Attorney Mark Wildasin for the Middle District of Tennessee.