Alibaba Group Holding Ltd. and its U.S. digital payment processor, AUS Merchant Services, agree to pay $600 million to resolve a U.S. Department of Justice investigation into allegations that they failed to prevent illegal drug-related sales on Alibaba’s e-commerce platforms. The DOJ says the investigation focuses on whether the companies allowed merchants to sell and import unlawful pharmaceuticals and controlled substances into the United States through Alibaba.com and AliExpress. Multiple reports state the case also involves regulated chemicals and pill-making equipment. According to the DOJ, Alibaba and AUS Merchant Services admit they did not adequately prevent roughly 80,000 unlawful product sales over nearly a decade, though the exact figures and scope of products are described in different ways across outlets. The settlement is presented as a major criminal resolution for a Chinese technology company and is structured through non-prosecution agreements. The agreement resolves federal allegations that federal law was violated by failing to stop prohibited goods from being sold and imported into the U.S. using the companies’ payment services.
Alibaba and payment processor to pay $600 million to settle U.S. drug sales probe
Alibaba Group Holding Ltd. and its U.S. digital payment processor, AUS Merchant Services, agree to pay $600 million to resolve a U.S. Department of Justice investigation into allegations that they fai...
- Alibaba and AUS Merchant Services agree to pay $600 million to resolve a U.S. Department of Justice probe.
- The DOJ alleges the companies failed to prevent merchants from selling and importing illegal pharmaceuticals and controlled substances into the United States.
- The alleged activity is linked to Alibaba’s e-commerce platforms, including Alibaba.com and AliExpress, and payment processing via AUS Merchant Services.
- Reports say the matter involves roughly 80,000 unlawful product sales over nearly a decade.
- The resolution is carried out through non-prosecution agreements with Alibaba and AUS Merchant Services.
(MedPage Today) -- The Chinese tech giant Alibaba will pay $600 million to resolve a dispute with the U.S. government over allegations that the Hangzhou-based firm sold and imported illegal pharmaceuticals, controlled substances, regulated chemicals...
1 month agoThe Chinese e-commerce company and its U.S.-based payment processor admitted to roughly 80,000 unlawful product sales over nearly a decade
1 month agoE-commerce giant admitted it failed to prevent 80,000 illegal drug product sales, according to US Justice Department.
1 month agoThe two companies agreed to pay the money to resolve allegations that they failed to prevent merchants from selling and importing illegal drugs, chemicals and pill presses into the US through Alibaba's e-commerce platforms
1 month agoAlibaba Group will pay US$600 million to settle a US Department of Justice investigation into allegations that its e-commerce platforms enabled the sale of thousands of illegal pharmaceuticals, controlled substances, and other prohibited products into the United States, marking one of the largest criminal resolutions involving a Chinese technology company. The settlement, announced on Wednesday, resolves the investigation through non-prosecution agreements with Alibaba and AUS Merchant Services,...
1 month agoAlibaba Group Holding and its U.S.-based payment processor, Ant Group subsidiary AUS Merchant Services, have agreed to pay $600 million to resolve U.S. Justice Department allegations that they failed to prevent illegal sales on Alibaba’s eCommerce platforms. The Justice Department alleged that Alibaba.com and AliExpress.com failed to prevent merchants’ sales and imports of illegal pharmaceuticals, […] The post Alibaba and Ant Subsidiary Pay $600 Million to Settle DOJ Illegal Sales Claims appeared first on PYMNTS.com.
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