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Google forfeits $500m after serving ads for Canadian drugs
ADVERTISING BROKER Google has given up $500m in revenue it allegedly gained from advertisements for drugs shipped into the US from Canada.
The US Department of Justice (DOJ) investigated claims that Google profited from serving adverts that promoted online pharmacies. The drugs sold by some of these outlets allegedly were imported into the US illegally. The DOJ claimed that Google's forfeiture of $500m is "one of the largest in the United States" and represents the gross revenue received by Google from the Canadian pharmacies that peddled the drugs plus the gross revenue made by the pharmacies themselves.
Google's double hit will serve as a warning for all online advertising brokers, highlighting the need for tighter controls over the acceptance of ad campaigns. According to the DOJ, it seems most pharmaceuticals imported into the US are illegal because the Food and Drug Administration is not able to ensure the safety and effectiveness of the medication. This is pretty obvious, so it is a bit surprising that Google might have made such a costly mistake.
Mistake or otherwise, deputy attorney general Cole didn't flinch on his assessment of the case, saying, "The DOJ will continue to hold accountable companies who in their bid for profits violate federal law and put at risk the health and safety of American consumers [...] This settlement ensures that Google will reform its improper advertising practices with regard to these pharmacies while paying one of the largest financial forfeiture penalties in history."
US attorney Neronha said that Google's forfeiture should serve as a warning to others, saying, "It is about holding Google responsible for its conduct by imposing a $500 million forfeiture, the kind of forfeiture that will not only get Google's attention, but the attention of all those who contribute to America's pill problem."
For Google, losing $500m is a serious financial hit, but what's far worse is that it should have known that playing fast and loose with import restrictions could land it in serious hot water. µ
Tags: Google
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I started serving all my ads myself. I use Ad Serving Solutions
www.adservingsolutions.com
I suggest everyone does their own ad serving in house
If *I* was google...I would just keep running the ads for FREE just to piss off big pharma and their bribe taking politicians.
There is something about pissing off self serving scumbags that I find very enjoyable...
It wasn't Google's fault.
The lax Canadian drug safety standards have killed off millions... haven't they?
Oh wait.. Canada actually has scientific standards and tightly regulated drug industries.
So much for that theory...
The American Consumer is being forced to pay high prices for made in USA drugs. The statement, "it seems most pharmaceuticals imported into the US are illegal because the Food and Drug Administration is not able to ensure the safety and effectiveness of the medication" implies that The Food and Drug Administration is able to ensure the safety and effectiveness of USA made drugs. This is not the case. This is protectionism.
You guys know by now that the FDA is not there for the benefit and protection of the public but like every other federal agency it is there to protect monopolistic private enterprises. Largest drug market in the world, large drug producer = highest prices.
Actually a whole bunch of these "illegal" drugs originate from the USA, go to Canada under lower prices, and are turned around to sell back to US citizens.
Suggesting that this is nothing more than pandering to the drug companies is a bit of a tattle.
"it seems most pharmaceuticals imported into the US are illegal because the Food and Drug Administration is not able to ensure the safety and effectiveness of the medication"
NO
fda is protecting pharmaceutical usury by restricting lower cost imports