The U.S. Department of Justice announced non-prosecution agreements with Alibaba Group Holding Limited and its U.S.-based payment processor AUS Merchant Services Inc. totaling USD 600 million to resolve allegations that they failed to stop merchants from selling and importing illegal pharmaceuticals, controlled substances, listed chemicals and pill presses into the United States through Alibaba.com and AliExpress.com. The resolution is based on alleged violations of the Federal Food, Drug, and Cosmetic Act and related federal laws, with Alibaba and AUS accepting responsibility for the conduct of their officers, directors, employees and agents. Alibaba admitted that between January 2016 and December 2024 it failed to prevent about 80,000 sales involving imports into the United States, with combined gross merchandise value exceeding USD 200 million, despite having policies that restricted prohibited products. The Justice Department said internal concerns had been raised that Alibaba’s controls were inadequate and that its in-platform messaging tools were used to facilitate unlawful transactions, including by directing buyers to encrypted third-party channels. AUS admitted that between January 2020 and December 2023 its U.S. dollar payment processing and anti-money laundering controls were deficient, including incomplete incorporation of wire-transfer data into transaction monitoring and failures to systematically restrict merchants linked to prohibited goods. Under the agreements, Alibaba will pay a USD 125 million criminal penalty and forfeit USD 200 million, while AUS will pay a USD 85 million criminal penalty and forfeit USD 190 million. Both companies also agreed to enhance their compliance programs and continue cooperating with the department in any ongoing or future criminal investigation related to the conduct. The Justice Department said the resolution reflected, among other factors, remedial steps, cooperation, acceptance of responsibility and the absence of prior criminal history.
U.S. Department of Justice2026-07-01
U.S. Department of Justice reaches $600 million non-prosecution agreements with Alibaba and AUS over illegal pharmaceutical sales and payment controls
The U.S. Department of Justice entered non-prosecution agreements with Alibaba and AUS Merchant Services requiring USD 600 million in penalties and forfeitures over failures to prevent illegal pharmaceuticals and related products from being sold into the United States through Alibaba platforms. Alibaba admitted failures tied to about 80,000 transactions, while AUS admitted weaknesses in payment monitoring and anti-money laundering controls. Both companies must strengthen compliance and continue cooperating with ongoing or future investigations.