Alibaba and Alipay US to Pay $600 Million Over Illegal Pharmaceutical Sales
The Justice Department's non-prosecution agreement covers roughly 80,000 illegal product sales into the US through Alibaba.com and AliExpress, the largest monetary settlement in the District of Rhode Island's history.
Alibaba and Alipay US to Pay $600 Million Over Illegal Pharmaceutical Sales The Justice Department's non-prosecution agreement covers roughly 80,000 illegal product sales into the US through Alibaba.com and AliExpress, the largest monetary settlement in the District of Rhode Island's history. Aaron Rafferty July 02, 2026 Key Takeaways Alibaba Group and its US payment processor AUS Merchant Services, formerly Alipay US, agreed on July 1 to pay $600 million to resolve DOJ allegations they failed to stop illegal pharmaceutical sales into the United States. Alibaba admitted its platforms hosted roughly 80,000 sales of illegal pharmaceuticals, controlled chemicals, and pill presses between 2016 and 2024, worth more than $200 million in gross merchandise value. Federal agents made over 40 undercover purchases during the investigation, and the deal is the largest monetary settlement in the District of Rhode Island's history. The Justice Department announced a $600 million non-prosecution agreement with Alibaba Group and AUS Merchant Services on July 1, resolving allegations that one of China's largest companies let merchants sell illegal pharmaceuticals, controlled chemicals, and pill presses to American buyers for nearly a decade. Alibaba admitted that between January 2016 and December 2024 it failed to prevent roughly 80,000 illegal product sales into the US through Alibaba.com and AliExpress, with combined merchandise value over $200 million. Employees had raised concerns that compliance controls were inadequate, and some merchants used the platform's private messaging service to move deals onto encrypted apps. Alibaba profited through membership, advertising, shipping, and payment fees. Federal law enforcement made more than 40 undercover purchases of p