Google Expected to Settle Over Drug Ads, to the Tune of $500M

Animats writes "The Wall Street Journal reports that 'Google Inc. is close to settling a US criminal investigation into allegations it made hundreds of millions of dollars by accepting ads from online pharmacies that break US laws.' Google's acceptance of ads from unlicensed 'online pharmacies' is considered profiting from illegal activity. The Washington Post reports 'the inquiry could draw more attention to how vulnerable Google's automated system has been to the machinations of shady operators.'" The expected settlement's magnitude was hinted at in a recent SEC filing, which disclosed that Google has set aside a half-billion dollar fund on which to draw in this case.

Comments

Peculiar policies

[lee1]

They still prohibit ads for legal products that they don't like:
http://adwords.google.com/support/aw/bin/static.py?hl=en&topic=28436&guide=28435&page=guide.cs&answer=176077
"Google AdWords prohibits the promotion of certain weapons such as firearms, firearm components, ammunition, balisongs (switchblades), butterfly knives, and brass knuckles. This policy applies to the content of your ad and your website.
(Emphasis added.)

Federal hypocrisy

[MikeRT]

They let Merck off from the full punishment when one of its business units was caught systematically defrauding Medicare because the full punishment, complete blacklisting from Medicare, would have risked bankrupting Merck. This is also the same government that prosecutes some Islamic schmuck who thinks he's giving money to aid Palestinians who are going without (but the "charity" is really a Hamas front), but then gives the "Palestinian Authority" hundreds of millions in funds (much of which is to arm itself) despite the fact that most of the PA's factions are regarded as terrorist groups by the federal government.