Online marketplace eBay and several of its former executives have agreed to pay $56 million to bloggers David and Ina Steiner. This settlement resolves a harassment case that arose from a targeted campaign against the couple in 2019. The Steiners operate EcommerceBytes, a website and newsletter that often published critical commentary about eBay.
The harassment campaign involved severe and threatening actions. Former eBay executives sent the couple a costume mask covered in pigs' blood and a book about surviving the death of a spouse. Other actions included sending a funeral wreath, harassing messages on Twitter, and attempts to install a tracking device on their car at their Massachusetts home. These actions were in retaliation for the Steiners' online criticism of eBay.
This incident highlights the growing challenges companies face in managing online criticism and the potential for severe consequences when internal responses escalate to illegal activities. The case underscores the importance of ethical corporate conduct and the legal ramifications of executive misconduct. It also reflects broader concerns about corporate accountability and the protection of free speech in the digital age, particularly for independent journalists and critics.
Seven former eBay executives pleaded guilty to criminal charges related to the harassment between 2022 and 2024, according to the U.S. Department of Justice. An FBI agent involved in the investigation described the former executives' actions as an "unprecedented, relentless, and over-the-top harassment campaign" in 2024. eBay itself was criminally charged and entered into a deferred prosecution agreement with the Department of Justice, agreeing to pay a $3 million fine.
While eBay is responsible for the majority of the $56 million settlement, former CEO Devin Wenig is personally contributing $1 million. Wenig, who left eBay in 2019, had sent a text message to eBay's top communications executive about Ina Steiner stating: "Take her down." A representative for Wenig stated that this text referred to a public relations strategy to address purported errors in Steiner's writing. Wenig expressed sadness over the events, stating, "No one should ever have been subjected to what the Steiners endured in 2019."
Christopher Murphy of Scalli Murphy Law PC, who represented the Steiners, commented on the resolution. He stated that the settlement sends a clear message that corporations and their executives cannot engage in such misconduct without facing significant consequences. eBay acknowledged the wrongdoing, stating that what the Steiners experienced was "wrong, reprehensible and should never have happened." The company condemned the former employees and admitted to an "unprofessional tone in internal communications" by Wenig and other former executives. This agreement aligns with eBay's commitment to fairly compensate the Steiners and rectify the situation.
The $1 million contribution from Wenig is designated for an unnamed charity dedicated to protecting First Amendment rights, to be gifted in Ina Steiner's name. The First Amendment of the U.S. Constitution protects freedom of speech, underscoring the gravity of the actions taken against the bloggers. This case sets a precedent for how large corporations must handle criticism and the severe penalties for illegal retaliation, impacting future corporate governance and public relations strategies.