The decision comes after Wal-Mart Stores and Sears Holdings said they would stop selling products bearing the Confederate flag on Monday, after a white gunman shot nine dead last week at a historically black South Carolina church.
Johnna Hoff, spokeswoman for eBay said the company will take immediate action to block new listings and begin notifying sellers who have current listings of Confederate flags or related merchandise that may be impacted by the decision.
A search on eBay's website on Tuesday found thousands of Confederate flags and merchandise including clothing and smartphone cases bearing the flag's image on its marketplace.
The company said it already prohibits items related to Nazis and slavery under its protocol to remove offensive materials from its site, which carries around 800 million listings globally.
"The decision is consistent with our long-standing policy that prohibits items that promote hatred, violence or glorify racial intolerance," said Hoff.
South Carolina lawmakers plan to introduce a resolution on Tuesday to begin a debate on removing the Confederate flag from the State House grounds following the killings of the churchgoers.
eBay's PayPal division was last month directed to pay a total of $25 million (roughly Rs. 159 crores) in fines and consumer redress in the US after being accused of illegally signing consumers up for an online credit product without their permission.
Edited by NDTV staff from original story by Reuters
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