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Thursday, August 25, 2011

Google paying $500 million for rogue drug ad claims

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In one of the highest settlement in the US, Google had agreed to pay $500 million for taking ads from 'rogue online Canadian pharmacies' in the high-profile dispute with the Department of Justice. It is the gross revenue received by Google as a result of Canadian pharmacies advertising through it's AdWords program.

"The Department of Justice 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," said Deputy Attorney General James M. Cole. "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."

Google announced in a February 2010 blog post that it would no longer allow Canadian pharmacies to advertise to U.S. customers

"We banned the advertising of prescription drugs in the U.S. by Canadian pharmacies some time ago," a spokesman for the company said in an e-mail. "However, it's obvious with hindsight that we shouldn't have allowed these ads on Google in the first place."

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