Alibaba to pay $600m to settle illegal drug sales allegations in US probe
Summary
Alibaba and its U.S.-based payment processor are paying $600 million to settle U.S. government allegations that they did not stop illegal drug sales on their platforms. The companies admitted they failed to prevent the sale and import of banned drugs and chemicals into the United States between 2016 and 2024.Key Facts
- Alibaba and AUS Merchant Services agreed to pay $600 million to resolve the allegations.
- The U.S. Justice Department investigated illegal drug sales through Alibaba’s e-commerce sites like Alibaba.com and AliExpress.com.
- The companies admitted to failing to stop about 80,000 sales of illegal chemicals, drugs, and pill presses imported into the U.S.
- The combined value of these unlawful product sales was over $200 million.
- More than 40 undercover purchases of illegal pharmaceuticals and counterfeit equipment were made during the investigation.
- Alibaba employees had previously expressed concerns about illegal product sales and weak compliance controls.
- The payment processor’s anti-money laundering controls were also found insufficient to stop banned product sales.
- As part of the deal, Alibaba agreed to improve its compliance programs and accept responsibility for its officers and employees.
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