Alibaba to pay $600M in DOJ settlement over illegal drug, equipment sales
BABA•Alibaba Group and its U.S. payment unit AUS Merchant Services agreed to pay $600 million to settle DOJ allegations that they allowed illegal pharmaceutical and medical equipment listings on Alibaba.com and AliExpress. The settlement covers claims that merchants shipped restricted drugs and devices into the U.S.
1. Settlement Terms
Alibaba Group and AUS Merchant Services will pay $600 million in cash to resolve Justice Department claims that the platforms allowed listings of illegal pharmaceuticals and medical equipment on Alibaba.com and AliExpress.
2. Allegations and Compliance Measures
The DOJ alleged merchants used the platforms to import restricted drugs and devices into the U.S.; the agreement requires Alibaba to enhance merchant screening, cooperate with regulators and implement stricter monitoring controls.
