Alibaba to pay $600m to settle illegal drug sales allegations in US probe

Alibaba and its US payment processor, AUS Merchant Services, will pay $600 million to resolve allegations that they failed to prevent illegal drug sales through Alibaba's e-commerce platforms. The US Justice Department announced that the companies entered into non-prosecution agreements, admitting they violated the Federal Food, Drug, and Cosmetic Act. Alibaba acknowledged failing to prevent approximately 80,000 sales of illegal drugs, chemicals, and pill presses imported from overseas between 2016 and 2024, with a total merchandise value exceeding $200 million. As part of the settlement, both companies agreed to accept responsibility for their employees' actions and enhance their compliance programs. The Justice Department conducted over 40 undercover purchases during its investigation.

Alibaba Group has agreed to pay $600 million to settle a U.S. Department of Justice investigation. The probe alleged that Alibaba's e-commerce platforms facilitated the sale of thousands of illegal pharmaceuticals, controlled substances, and other prohibited products into the United States. This settlement, announced on Wednesday, resolves the investigation through non-prosecution agreements with Alibaba and AUS Merchant Services, a subsidiary of Ant Group. While avoiding criminal prosecution, both companies accepted responsibility for the conduct and committed to enhancing their compliance programs. An Alibaba spokesperson stated the company reached a "mutually satisfactory resolution" with U.S. regulators regarding compliance for third-party merchants selling into the U.S.

Chinese e-commerce giant Alibaba will pay $600 million to the U.S. government to settle allegations that its platforms facilitated the sale and import of illegal pharmaceuticals, controlled substances, regulated chemicals, and pill-making equipment into the United States. The U.S. government alleged that Alibaba's U.S.-based payment processor, AUS Merchant Services, failed to prevent merchants from selling these illegal products through Alibaba.com and AliExpress.com. Alibaba acknowledged in an agreement with the Justice Department that between January 2016 and December 2024, it failed to stop approximately 80,000 product sales involving unlawful imports. The settlement, a non-prosecution agreement, resolves concerns raised by Alibaba employees about inadequate compliance controls. Law enforcement agencies conducted numerous undercover purchases as part of the investigation.