September 7, 2011

Google is paying an immense settlement for allowing ads for online pharmacies--and as Chris Murphy explains, the money will be used to make people's lives worse.

IN ONE of the largest forfeitures in U.S. history, Google has agreed to give up $500 million for allowing online Canadian pharmacies to place ads on its site targeted at U.S. consumers. The ads, according to federal and state officials, resulted in the illegal importation of controlled and prescription drugs into the U.S.

Drug and health care advertising generated about $1 billion in Internet spending last year--spending that is expected to grow to nearly $1.9 billion by 2015, according to the research firm eMarketer Inc.

U.S. Attorney for Rhode Island Peter Neronha said the settlement sends a "clear message" to those that contribute to Americas "pill problem" will be held accountable.

But what really is America's "pill problem"?

Google can afford the $500 million settlement, and no one is against regulation of prescription medications. The real question that needs to be addressed is why do people use "illegal" online pharmacies?

Most of the time, it isn't to try to purchase narcotics such as oxycodone. People use online pharmacies to purchase medications for less money. Families who have no insurance in many cases can't afford to buy life-saving drugs.

An office facility for Google

So what did the government do with the $500 million that was confiscated from Google? It was deposited into the "Seized Assets Deposit Account of the U.S. Marshal Service." The law enforcement agencies that participated in this operation in Rhode Island are going to receive monies, and lots of it.

Steven O'Donnell, a state police spokesperson, said he expected his agency alone would see tens of millions of dollars. The money would be targeted toward enhancing law enforcement efforts department-wide. It cannot be used to plug any budget deficits or hire new staff. But spending on equipment and buildings is okay.

In reality, there's no need to better equip law enforcement agencies in order to enable their incarceration of individuals under the guise of the "war on drugs" or to promote the violation of people's civil rights.

Instead, this $500 million would have been better spent on addressing the reasons why online pharmacies are popular in the U.S.--the high cost of medications for families living in the richest country in the world.

This large forfeiture could address the current significant crisis within hospitals throughout the country, as many are running low on needed medications. Retired seniors could receive assistance for the yet-be-closed "donut hole" of Medicare Part D--the hole in coverage that can lead to thousands of dollars of out-of-pocket expenses. A severely ill individual could receive money to pay for medications not covered by their insurance plan.

There are many worthy uses of this money within a country facing "austerity on steroids." Funding law enforcement's new toys, though, is not one of them.

Regulation of medications is critical, but capitalism is making this impossible. The cost of medications is driven up in an artificial manner through various mechanisms, while consumers try to find the cheapest way to attain their needed prescriptions. Only when medications are available to all on a basis of need and not profit will America's "pill problem" be addressed.