Google will shell out $500 million to settle a federal investigation into charges that it accepted illegal advertising from Canadian online pharmacies directed at U.S. consumers.
As the The Wall Street Journal reports, the U.S. Justice Department said Google should have known as early as 2003 that the online pharmacies were using Google’s AdWords program to illegally sell medications to U.S. residents.
Exporting drugs to U.S. consumers is “almost always unlawful” because the Food and Drug Administration cannot ensure their safety and effectiveness, the Justice Department said. It added that the medicines are sometimes dispensed without a valid prescription.
Investigators found, The New York Times reports, that Google was aware that some of its Canadian pharmacy advertisers failed to require a prescription for substances such as the painkiller Oxycontin and the stimulant Ritalin. What’s more, Google continued to accept their money and assisted the pharmacies in placing ads and improving their Web sites, according to the Justice Department.
In May the Journal broke the news that Google set aside $500 million to settle the investigation. The money represents both revenue Google earned from the ads and the pharmacies’ revenue from sales to U.S. consumers.
In a statement Wednesday, Google said that it banned advertising of prescription drugs in the U.S. by Canadian pharmacies “some time ago.” The company added, “However, it’s obvious with hindsight that we shouldn’t have allowed these ads on Google in the first place.”
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