Google Admits Role in Illegal Sale of Prescription Drugs

Google, the search giant landed up in troubles by allowing online advertisement from a Canadian Pharmaceutical Company that illegally offers drugs to US customers. Admitting the mistake Google has agreed to pay a penalty of $500 million to the Justice department.

The million dollar settlement with the Justice Department over the distribution of online ads promoting illegal sales of imported prescription drugs has been done, as Google faces rising legal problems in US and Europe.

The settlement was announced on 24th August, 2010, Wednesday after admitting that it assisted the Canadian online Pharmacy advertisers that either legally sold controlled drugs in the US with out any prescription or that sold counterfeit drugs. The amount being paid as an settlement represents the gross revenue received by Google from the Canadian company and the revenue the pharmacies received from their sales to US consumers for a period of 2003 to 2009.

During the Justice Department settlement, authorities said Google allowed the pharmacies to advertise online from 2003 to 2009 using its key words program despite knowing the fact that many controlled prescription drugs were being illegally sold to the people of US.

Officials thought that this issue sends signals to all the health care and pharmaceutical online advertising market in US, which is expected to be a $2.68 billion industry in 2015, when compared with $900 million in 2009, according to e marketer.

In this matter Google Chairman Eric Schmidt will appear at the Senate Judiciary committee anti trust hearing devoted solely to the committee on 21st Sept. This settlement not only drags Google’s attention towards pharmaceutical online advertising but also those who contribute to American’s prescription drug problem.