Google settles pharma suit
August 25, 2011
INTERNET juggernaut Google has
agreed to pay half a billion US
dollars to settle a government
investigation into online pharmacy
advertising.
The case is intriguing, because it
has been brought on the basis that
the online search leader had
“improperly profited” from
advertisements promoting online
pharmacies in Canada which
illegally sold drugs in the USA.
Google and its senior executives
now will not face criminal
prosecution over the case, which is
believed to be the first time that a
search engine has been held
responsible for the illegal
distribution of medications.
A spokesperson for the US Justice
Department said the case “sends a
clear message to both Google and
to others that contribute to
America’s pill problem that they
will be held to account for
endangering the health and safety
[of] persons all across the United
States”.
The massive penalty has been
based on money “illicitly earned by
Google” as a result of the ads, as
well as profits earned by the
Canadian pharmacies themselves
from their sales to US consumers.
Google said it had banned
prescription drug advertising some
time ago, but in a statement added
“it’s obvious with hindsight that we
shouldn’t have allowed these ads
on Google in the first place”.
The Justice Department claimed
Google knew it was breaking the
law since 2003 but allowed the
advertising to continue until 2009.
Investigators built their case via
an undercover “sting” operation
where they set up fake websites to
promote unlawful sale of drugs.
Google won’t have trouble paying
the fine, though, with the company
currently sitting on a whopping
US$39 million in cash.
The above article was sent to subscribers in Pharmacy Daily's issue from 25 Aug 11To see the full newsletter, see the embedded issue below or CLICK HERE to download Pharmacy Daily from 25 Aug 11
