(Image source: Google)

 

BY MELISSA ORIBHABOR

 

 

Tech powerhouse Google is used to making headlines, but this time the news is not so good.

 

“Google has agreed to pay half a billion dollars to settle claims it posted online ads for Canadian pharmacies illegally.” (WPRI)

 

This criminal investigation by the Department of Justice into Google’s advertising has been going on for some time. Google, based out of California, was being investigated for facilitating certain Canadian pharmacies that were illegally importing prescription medications to the United States.

 

A $500 million fine might seem like a lofty penalty. But the DOJ took into account the amount of money Google made from these ads through its AdWords program, as well as the profits made by the Canadian pharmacies.  A U.S. Attorney quoted by CNN explained the problem with these advertisements:

 

"This investigation is about the patently unsafe, unlawful importation of prescription drugs by Canadian online pharmacies, with Google's knowledge and assistance, into the United States, directly to U.S. consumers."

 

Google is not claiming ignorance of the law, in fact, in the past it has not permitted advertising form other overseas pharmacies. It, however, did not take the same measures to stop Canadian pharmacies from advertising to Americans. The Wall Street Journal has more...
 

“Well, they’re not admitting any sort criminal liability, but they are saying in hindsight it as not a good idea to do this. The government’s case in their non-prosecution agreement, their agreement not to prosecute, is that they knew full well since 2003 that this was wrong and that they did it anyway.”

 

Earlier this year Google confirmed it set aside money for a potential settlement with the DOJ while the investigation was still on-going. At this time, Google will not be subject to any criminal charges.
 

Business News: Google Ad Lawsuit

Google Settles with the Dept. of Justice for $500 Million

August 25, 2011
(1:45)
Google agreed to pay $500 million for allowing Canadian drug ads to target American consumers
   
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