The Justice Department’s settlement of a criminal investigation of Google for allowing Canadian pharmacies to advertise drugs for distribution in the United States reflected an effort by prosecutors to extend the reach of federal drug laws. This may present future challenges to Internet search companies over their advertisements.
Google entered into a nonprosecution agreement with the government last week over the use of its AdWords program by Canadian pharmacies that helped them sell prescription drugs in the United States in violation of a federal law, 21 U.S.C. § 331(a). That law prohibits causing the “introduction or delivery for introduction into interstate commerce of any food, drug, device, tobacco product, or cosmetic that is adulterated or misbranded.”
Google agreed to forfeit $500 million, representing its revenue from the Canadian pharmacies, and to enhance its compliance program for drug advertising.
Read more: Behind Google’s $500 million settlement with U.S.