August 24, 2011

Google Reaches $500 Million Pharmacy Settlement


Google said on Wednesday that it should not have allowed Canadian pharmacies to advertise prescription drugs to U.S. consumers.

The Internet giant agreed to pay $500 million to settle a federal investigation on the distribution of online ads from pharmacies that were illegally selling prescription and non-prescription drugs to American consumers.

The settlement means Google will not face criminal prosecution for accusations it improperly profited from ads promoting "rogue" Canadian pharmacies that imported drugs illegally into the U.S.

Media reports at the time said the investigation concerned ads for online pharmacies that sold counterfeit drugs or that sold drugs to buyers who did not have prescriptions.

Google said in the past that regulating these pharmacies on its site is a cat-and-mouse game because they find new ways to appear on Google regardless of what tries to filter them out.


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