$600 million will be paid by Alibaba under a Justice Department non-prosecution agreement over claims its platforms enabled illegal pharmaceuticals, controlled substances, chemicals and pill-making equipment to reach U.S. buyers.
About 80,000 sales from January 2016 through December 2024 involved unlawful imports that Alibaba acknowledged it failed to stop, according to the settlement.
Alibaba's U.S.-based payment processor, AUS Merchant Services, was accused of failing to block merchants, while employees had warned compliance controls were inadequate and some sellers shifted buyers to third-party messaging apps.
More than 40 undercover purchases by FDA, FDIC, IRS-CI and other agencies helped build the case, as Alibaba said the deal would tighten compliance for third-party merchant sales into the U.S.