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Federal Food, Drug, and Cosmetic Act

Topic Policy

Alibaba fined $600M for failing to prevent illegal drug sales, highlighting FD&C Act enforcement.

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Topic Overview

The Federal Food, Drug, and Cosmetic Act (FD&C Act) is a cornerstone of U.S. law regulating the safety, efficacy, and labeling of food, drugs, cosmetics, and medical devices. It grants the Food and Drug Administration (FDA) broad authority to oversee these products. Recent news involving Alibaba, the Chinese e-commerce giant, underscores the Act's ongoing relevance and enforcement. Alibaba agreed to pay $600 million to resolve allegations by the U.S. Justice Department that it failed to prevent approximately 80,000 illegal drug sales and the sale of related equipment on its platforms. This settlement highlights the government's commitment to enforcing the FD&C Act, even against international entities, to protect consumers from illicit and potentially dangerous products. The case demonstrates that companies, regardless of their global reach, can be held accountable for facilitating the distribution of unapproved or illegal substances, reinforcing the FD&C Act's critical role in safeguarding public health.
Last updated: July 2, 2026