The amount forfeited by Google has the gross revenue relating to the Canadian pharmacies for selling their products to U.S. consumers. The shipment was considered illegal as these prescription drugs to consumers from anywhere outside the US is against the law. DOJ stated that Google had known this fact in 2003 and even knew that shipment for the same was illegal to be moved from Canada to the United States.
In usual cases, it was noted that Canadian pharmacies have U.S. consumers as they get U.S. prescription drugs for a price which is cheaper medium as compared to getting them in U.S. It is illegal to sell them via shipping to U.S. is as they skirt Food and Drug Administration (FDA) regulations. Again it is restricted looking at the Canada’s regulators. James Cole, Deputy Attorney General said:
“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.”
DOJ did not forget to add in that the search engine giant had knowledge of the illegal act and a notice was presented to them relating to Canadian pharmacies using AdWords. The DOJ continued noting that there were steps taken up by Google to prevent
pharmacies in almost every country to advertise in the United States via AdWords. However, the restriction had an exception for the Canadian pharmacy.
DOJ even stated that Google knew that the purchases were made online by the consumers and instead of a valid prescription from a treating medical practitioner, the purchases were made with the help of online consultation. Google even had noticed that such purchases made from the pharmacies were adding in a handsome amount as premium. The premium was charged as the consumers who do not have a valid prescription, would not disagree from paying more for these prescription drugs. The prescription drugs even included controlled prescription drugs.
Google had further been of great help to these Canadian online pharmacy advertisers during 2003 and 2009, as it was providing customer support to some of them. This help included assistance on optimizing and placing their AdWords advertisements and along with it, even helped in the improvement of their website’s effectiveness.
There was a clear proof of Rhode Island and the FDA were even investigating Google in 2009. on knowing the fact, Google started clamping down on the Canadian pharmacies so that it could verify that the advertisers were legit.
Talking about the settlement agreement, Google not only acknowledged that it was assisting Canadian online pharmacies, but it even took up the responsibility for its wrong doing. The search engine giant will also have a submission of “compliance and reporting measures”, so that it ensures that it gets everything which is required by the DOJ.