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

Posted by timothy on from the don't-worry-the-government-is-here dept.

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.

5 of 138 comments (clear)

  1. Re:Go go Google by dargaud · · Score: 5, Insightful

    If a pharmacy sells prescription meds without a prescription, they should have their license revoked and it doesn't matter where they are. If a non-pharmacy sells meds... then the laboratory that sells it to them should have its license revoked !

    --
    Non-Linux Penguins ?
  2. Re:Made Billions by walshy007 · · Score: 4, Insightful

    You think advertising spending alone for illegal drugs is billions? really? think about it.

    This is kind of like a pharma doing shady things posting an advertisement in the paper, then the government fining the paper for accepting the advertising when the company shown was dodgy.

    Unless google has specific legal obligations as an advertiser, the company that put the ad forward should be held accountable for their actions not google.

    baddies putting ads out makes it easier for cops to catch them, so why punish the advertisers?

  3. Re:Go go Google by Anonymous Coward · · Score: 4, Insightful

    Overuse of antibiotics leads to less effective antibiotics. So the effectiveness is a common resource which is not yours alone to squander.

    Anything else though should be fair game.

  4. Re:Go go Google by bioster · · Score: 4, Informative
    Surprisingly, the laws in different countries are different. For example, in Canada there are some drugs which are completely legal to sell without a prescription whereas in the states you would need a prescription.

    FTA:

    The federal investigation has examined whether Google knowingly accepted ads from online pharmacies, based in Canada and elsewhere, that violated U.S. laws, according to the people familiar with the matter.

    So it looks like this is more of a cross-border shopping issue than anything else. People are going online and buying from Canadian companies things that are completely legal to buy and sell in Canada, but happen to be illegal where they are.

    I'm not entirely sure why you didn't get this, since the article itself points it out, AND the comment you responded to points it out.

  5. Peculiar policies by lee1 · · Score: 5, Interesting

    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.)