Alibaba, a Chinese tech giant, has agreed to pay $600 million to resolve a dispute with the U.S. government over allegations that the company allowed the sale and importation of illegal pharmaceuticals, controlled substances, and pill-making equipment into the U.S.
Settlement Details
The U.S. government alleged that Alibaba’s U.S.-based payment processor, AUS Merchant Services, violated federal law by failing to prevent merchants from selling and importing illegal products into the U.S. through Alibaba.com and AliExpress.com.
According to the settlement, between January 2016 and December 2024, Alibaba failed to stop roughly 80,000 product sales involving unlawful imports that violated the Federal Food, Drug, and Cosmetic Act and other federal laws.
Law enforcement officers conducted over 40 undercover purchases of pharmaceuticals and equipment that were illegal to import into the U.S., leading to a non-prosecution agreement between Alibaba and the Justice Department.
Original reporting: Texarkana Gazette — read the source article.
