Strong Medicine for Google: $500M Settlement
Thursday, August 25th, 2011
It is often said in medical circles that prevention is better than cure – advice that the folks at Google Inc. have apparently taken to heart, preventing a lengthy legal wrangle by making one of the largest legal settlements ever seen in the US. Google has agreed to pay $500 million to settle claims that the company allowed Canadian pharmacies to place online advertisements targeting US consumers.
US law (specifically the Controlled Substances Act) forbids the importation of prescription drugs from pharmacies beyond the country’s borders, and the Department of Justice reports that the pharmaceutical AdWords campaigns led to illegal shipments of medication from Canada to US customers. Google’s payment of $500 million (the equivalent of £305 million) is a reflection of the revenue generated by the search giant and the pharmacies as a result of the AdWords advertisements. According to the Justice Department, Google was aware of the legal restrictions, and paying the penalty for “improper advertising practices” will allow the company to avoid criminal charges. This follows a 2-year investigation into the matter.







