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Alibaba Fined $600M for Illicit Drug Sales on Platform

Wall Street Journal US Business •
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Alibaba Group and a U.S. payment processor will pay $600 million to settle Justice Department allegations that they facilitated the sale and import of illegal pharmaceuticals and other restricted goods into the United States. The settlement resolves claims that the e-commerce giant knowingly allowed merchants to conduct these illicit transactions.

Alibaba.com admitted to failing to prevent approximately 80,000 sales involving illegal items, including pharmaceuticals and listed chemicals, between 2016 and 2024. The total gross merchandise value of these prohibited sales exceeded $200 million. This failure violated the Federal Food, Drug, and Cosmetics Act, according to the DOJ.

The agreement includes a non-prosecution clause for Alibaba, indicating its cooperation with the investigation. This substantial penalty underscores the U.S. government's increasing scrutiny of online marketplaces for compliance with import and drug regulations.