Illegal Online Ads: Google Settles Federal Case for $500 Million

By Rob Scott
August 25, 2011

In a case that indicates the U.S. government will hold websites liable for any illegal advertisements shown on their pages, Google settled its case over illegal online pharmacy ads by paying a $500 million fine.
The investigation (first revealed in May) led to this week’s settlement that has reportedly decreased Google’s quarterly profits by 22 percent.
“The Department of Justice will continue to hold accountable companies who in their bid for profits violate federal law and put at risk the health and safety of American consumers,” said Deputy Attorney General James M. Cole. “This settlement ensures that Google will reform its improper advertising practices with regard to these pharmacies while paying one of the largest financial forfeiture penalties in history.”
“Obviously, such a decision has far-reaching consequences beyond those of just the illegal pharmacies, as Google faces threats from a number of illegal and malicious entities who want to leverage its search engine to expose unsuspecting users to their ads,” reports TechCrunch. “Traditionally, Google itself has filed lawsuits against advertisers it suspected of breaking its rules, but this has clearly not been enough of a deterrent.”

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