Alibaba will pay 600 million dollars to settle a US probe into illegal pharmaceutical sales on its platform

TL;DR

Alibaba and its US payment arm will pay 600 million dollars to resolve a DOJ probe into illegal pharmaceutical sales on its e-commerce platform.

Alibaba and its US digital payment processor have agreed to pay 600 million dollars to resolve a federal investigation into whether they failed to prevent the sale and importation of illegal pharmaceuticals and controlled substances, the Justice Department said on Wednesday. Alibaba entered into a non-prosecution agreement to end a probe of alleged violations of the Federal Food, Drug, and Cosmetic Act between 2016 and 2024. The investigation was led by the DOJ and the US Attorney’s Office in Rhode Island.

Alibaba admitted that overseas customers used its platforms to make roughly 80,000 purchases of products that lacked approvals under US drug, device, or importation laws, with a combined value of more than 200 million dollars. The agreement did not specify the products by name,...

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