Alibaba will pay US$600 million to resolve a dispute with the U.S. government over allegations that it sold and imported illegal pharmaceuticals, controlled substances, regulated chemicals, and pill-making equipment into the U.S. The U.S. alleges that Alibaba's U.S.-based payment processor, AUS Merchant Services, violated federal law by failing to prevent merchants from selling and importing illegal products through Alibaba.com and AliExpress.com. Alibaba acknowledges in an agreement with the Justice Department 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. A non-prosecution agreement was crafted between Alibaba and the Justice Department, and Alibaba said the resolution brings stricter compliance to the sale of products in the U.S. by third-party merchants on its platforms.
Alibaba Group Holding LtdAlibaba to pay $600M settlement over illegal drug and equipment sales allegations, with non-prosecution agreement requiring stricter compliance
Astera Labs, Inc.