Regulators Say Google CEO Knew About Illegal Drug Ads

BY LOGAN TITTLE

ANCHOR ANA COMPAIN-ROMERO

What’s the latest Google search? Well—Google.

Since dropping $500 million earlier this week for having illegal ads, the source-filled site is standing alone with the blame.



And CNN says – this was something they should’ve seen coming.



The president of Columbia University's National Center on Addiction and Substance Abuse, warned Google CEO Eric Schmidt of the problem in a 2008 letter…[He wrote] "This suggests that Google is profiting from advertisements for illegal sales of controlled prescription drugs online…"



Pharmalot.com reports Google knew it had been violating US law since 2003—but didn’t actually ban the ads until 2009. So how did the company continue to still do it?

The Wall Street Journal calls it “window dressing” which allowed Google...



“…to continue earning revenues from the allegedly illicit ad sales even as it professed to be taking action against them… This was a corporate decision to engage in this conduct.”



But what about the advertisers who made the original decision to place illegal ads? Certainly Google’s not the only party taking a hit. The Wall Street Journal points out the paradox.



“There’s a few things interesting here: One is that Google would normally say we cant be responsible for what our advertisers have done. Here they seem to be accepting the argument by the US attorney that you were aiding illegal behavior online. That raising the question what else are advertisers doing and what’s their liability?"



This isn’t the first time Google has has to fork up money for a fault. A writer for Investment U asks - is Google the new Goldman?



“Both companies have strong ties to the regulatory bodies in charge of monitoring them...Also, both companies appeared to have built fines into their business model.”



For now, the company is admitting guilt and moving on. But if given a do-over, Google told eWeek...



“It’s obvious with hindsight that we shouldn’t have allowed these ads on Google in the first place.”

1. By: newsydotcom
2. Categories News & Events
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4. Added :31-Aug-11
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