Alibaba to Pay $600 Million to U.S. Justice Department to Resolve Illegal Product Sales Probe
Alibaba Group and its U.S. payment processor AUS Merchant Services have agreed to a $600 million settlement with the U.S. Department of Justice over the sale of unlawful products on Alibaba.com and AliExpress.com.
Alibaba will pay $600 million to settle a U.S. government investigation over illegal product sales. The settlement is with the U.S. Department of Justice. Alibaba acknowledges that between January 2016 and December 2024 it failed to stop roughly 80,000 product sales involving unlawful imports that violated the Federal Food, Drug, and Cosmetic Act and other federal laws. Alibaba’s U.S.-based payment processor, AUS Merchant Services, violated federal law by failing to prevent merchants from selling illegal products through Alibaba.com and AliExpress.com.
According to the South China Morning Post, Alibaba was alleged to have sold and imported illegal pharmaceuticals, controlled substances, regulated chemicals, and pill‑making equipment into the United States.
The Wall Street Journal reported on 1 July that Alibaba Group and AUS Merchant Services are to pay $600 million.
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