Feds Pop Google for $500M for Canadian Pill Ads

[Electric Monk]

Source: Wired

By Ryan Singel August 24, 2011 | 2:42 pm

Google agreed Wednesday to pay a $500 million fine to the U.S. government for knowingly allowing Canadian pharmacies to advertise prescription drugs to U.S. residents.

Importing drugs into the U.S. is not legal, though the feds almost always turn a blind eye to drugs from Canada and don’t prosecute individuals.

The forfeiture, which the feds describe as one of the largest ever, forces Google to return all the revenue it generated from those ads, and pay the feds the estimated gross revenue of the Canadian pharmacy sites that placed the ads.

The announcement was widely expected as Google mentioned in an SEC filing in May it was setting aside half a billion to pay a fine. The fine represents more than 20% of Google’s profits from the first quarter of this year.

Read more: http://www.wired.com/epicenter/2011/08/google-drug-fine/

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much more at the link

Score one for the Big Pharma lobbyists...


edited to add a couple more links:
http://www.forbes.com/feeds/ap/2011/08/24/technology-us-google-advertising-investigation_8640159.html
http://news.cnet.com/8301-1023_3-20096624-93/google-settles-rogue-drug-ad-claims-for-$500-million/
http://money.cnn.com/2011/08/24/technology/google_settlement/

[banned from Kos]

1. but, but - Obama took $500,000 from Google employees!

He must have been paid off by them!

(full snark on)

[leveymg]

2. Giant Pharma takes down Google: Battle of the Monster Corporations

[izquierdista]

3. One way to raise revenue

Now if they can fine the REST of the companies that pay negative income tax, maybe the deficit can close a bit.

[subterranean]

4. Good to know our government is vigilantly protecting us from reasonable drug prices.

It's important for all Americans to pay the correct American prices for their medicine, so they don't get fleeced by Canadian pharmacies trying to sell them the same drugs for less money.

[Poll_Blind]

5. Ha ha! What a surprise! Obama reneges on ANOTHER campaign promise! WaPo: (LINK)

From December '09, Washington Post:

On the campaign trail, Barack Obama vowed to take on the drug industry by allowing Americans to import cheaper prescription medicine. "We'll tell the pharmaceutical companies 'thanks, but no, thanks' for the overpriced drugs -- drugs that cost twice as much here as they do in Europe and Canada," he said back then.

On Tuesday, the matter came to the Senate floor -- and President Obama forgot the "no, thanks" part. Siding with the pharmaceutical lobby, the administration successfully fought against the very idea Obama had championed.

"It's got to be a little awkward," said Sen. Tom Carper (D-Del.).

It's even more awkward for millions of Americans who are forced to pay up to 10 times the prices Canadians and Europeans pay for identical medication, often produced in the same facilities by the same manufacturers, simply because the U.S. government refuses to rein in drug prices.

And here's a piece by Cenk about it, Obama Fighting Against Cheaper Prescription Drugs?

The thing about Obama is when he backtracks on a promise, he seems to do it with a vengeance.

PB

[Chimichurri]

6. Free markets for me, none for thee.