Alibaba and AUS to Pay $600M Over Illegal Sales Claims

WHO:

Reuters - Alibaba, a Chinese technology and e-commerce giant, and AUS, its U.S.-based payment processor.

WHAT:

Fox Business - Alibaba admitted that between January 2016 and December 2024, roughly 80,000 unlawful product sales involving imports into the U.S. violated the Federal Food, Drug and Cosmetic Act and other federal laws.

Fox Business - The transactions generated more than $200 million in gross merchandise value.

Fox Business - Under the agreement, Alibaba will pay a $125 million criminal penalty and forfeit $200 million, while AUS Merchant Services will pay an $85 million criminal penalty and forfeit $190 million.

Reuters - Alibaba and AUS have agreed to pay $600 million to resolve allegations from the U.S. Department of Justice (DOJ) regarding illegal sales of drugs and other products.

ABC News US - Alibaba has agreed to pay $600 million to settle a dispute with the U.S. government.

WHERE:

Reuters - The allegations involve operations in the United States.

WHY:

Reuters - The settlement addresses DOJ allegations that Alibaba and AUS failed to prevent illegal sales.

HOW:

Fox Business - Both companies agreed to strengthen their compliance programs and continue cooperating with federal investigators.

Reuters - The resolution involves a financial settlement of $600 million.

(UPDATED July 2, 2026 06:21 UTC)

Alibaba has admitted to unlawful product sales involving imports into the U.S. that violated federal laws, with these transactions generating over $200 million in gross merchandise value between January 2016 and December 2024. As part of a legal agreement, Alibaba will pay a $125 million criminal penalty and forfeit $200 million, while AUS Merchant Services will face an $85 million penalty and forfeit $190 million. Both companies have committed to enhancing their compliance programs and will continue to cooperate with federal investigators moving forward.

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(UPDATED July 1, 2026 23:25 UTC)

Alibaba, the Chinese technology and e-commerce giant, along with its U.S.-based payment processor AUS, has agreed to pay $600 million to resolve allegations from the U.S. Department of Justice regarding illegal sales of drugs and other products. The allegations specifically involve operations within the United States and claim that Alibaba and AUS failed to prevent these illegal sales. This substantial settlement aims to address the concerns raised by the DOJ and bring closure to the dispute with the U.S. government.