Google Pays $500 Million for Featuring Ads by Canadian Pharmacies

Advertisements on Google have become a powerful marketing tool for many companies, including online pharmaceutical companies that sell prescription drugs to Texas consumers without prescriptions.

When Google Ads began selling to these Canadian pharmacies in 2004, the company knew that the pharmacies were illegally selling prescription drugs to American consumers. Yet, the ad sales boosted Google's stock and helped the company to generate $39 billion in cash alone by June 2011.

Recent estimates suggest that advertising for drugs and other healthcare services or products generates nearly $1.3 billion in Internet spending. According to eMarketer Inc., by 2015, that spending is expected to double to nearly $2.6 billion.

Drugs that are illegally imported into the United States endanger the health and safety of U.S. citizens, especially because many of these drugs are often counterfeits. Prescription drugs that are claimed to come from Canada, often actually come from as many as 27 different countries.

Although the United States cannot prosecute online pharmacies located in foreign countries, criminal investigators for the Food & Drug Administration (FDA) are able to bring charges against Internet search engines, like Google, that help online pharmacies violate U.S. laws.

Based on the $500 million settlement reached, Google will not be criminally prosecuted, but critics say the company's reputation has already been damaged.

What is clear is that U.S. officials are willing to track down those companies that endanger the health of the U.S. citizens and contribute to America's growing prescription pill problem.