Pharmacy Daily | Google settles pharma suit

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 11
To see the full newsletter, see the embedded issue below or CLICK HERE to download Pharmacy Daily from 25 Aug 11