Google Pay US$500 Million Settlement Over Online Drug Ads

Internet giant Google Inc. has agreed to pay the US government US$500 million for allowing online Canadian pharmacies to advertise to US-based consumers through its AdWords program, according to a press statement released by the United States Department of Justice on Wednesday.

Internet giant Google Inc. has agreed to pay the US government US$500 million for allowing online Canadian pharmacies to advertise to US-based consumers through its AdWords program, according to a press statement released by the United States Department of Justice on Wednesday.

According to the Department of Justice, Google had been aware as early as 2003 that it was illegal to ship both controlled and non-controlled prescription drugs into the US. Google’s actions, it said, had resulted in the “unlawful importation of controlled and non-controlled prescription drugs into the United States.”

[quote]“The Department of Justice will continue to hold accountable companies who in their bid for profits violate federal law and put at risk the health and safety of American consumers,” said Deputy Attorney James Cole.

“Although Google took steps to block pharmacies in countries other than Canada from advertising in the US through AdWords, they continued to allow Canadian pharmacy advertisers to target consumers in the United States.”[/quote]

The LA Times reports that Google had known from as early as May that it was susceptible to monetary repercussions. As such, the company had long earmarked US$500 million for a potential settlement of a government investigation into its advertising business.

[quote]The company was quoted to have said in an email statement that, “while we banned the advertising of prescription drugs in the U.S. by Canadian pharmacies some time ago, it’s obvious with hindsight that we shouldn’t have allowed these ads on Google in the first place.”[/quote]

Under the terms of the settlement, not only will Google have to fully acknowledge responsibility for its action, the company also must set forth a number of compliance and reporting measures in order to insure that similar incident do not occur in the future.

[quote]“This investigation is about the patently unsafe, unlawful, importation of prescription drugs by Canadian online pharmacies, with Google’s knowledge and assistance, into the United States, directly to U.S. consumers,” said Peter F. Neronha, U.S. Attorney for the District of Rhode Island. “It is about holding Google responsible for its conduct by imposing a $500 million forfeiture, the kind of forfeiture that will not only get Google’s attention, but the attention of all those who contribute to America’s pill problem.”[/quote]