Thursday, July 2, 2026
Business - LEVEL1

Alibaba Agrees $600 Million Settlement with DOJ over Illegal Sales

By aimee yang

Chinese company Alibaba will pay $600 million to settle problems with U.S. laws. The company admitted it did not stop many illegal product sales on its websites. These products included fake medicines and other controlled items.

The U.S. Department of Justice (DOJ) announced this deal. Alibaba and its payment service, AUS Merchant Services, will pay this amount to fix the issues. They didn’t stop around 80,000 illegal sales from January 2016 to December 2024, breaking U.S. laws.

The companies failed to check their transactions properly. This means they missed risky sales. In some cases, sellers continued to sell these illegal products even after being reported.

The DOJ did over 40 secret purchases of these illegal items. They found problems with AUS Merchant Services’ anti-money laundering program. This program is supposed to prevent illegal money transfers.

Alibaba said it will improve its systems to prevent future problems. They want to follow U.S. rules better. Both companies will also work with U.S. authorities in the future.

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Vocabulary List:
6 words · tap to reveal
ON

Accent

settle/ˈsɛtəl/verb
agree to pay or fix a legal problem

admitted/ədˈmɪtɪd/verb
said they had done something wrong

illegal/ɪˈliɡəl/adjective
not allowed by the law or rules

transactions/trænˈzækʃənz/noun
money or business exchanges between people or companies

laundering/ˈlɔndərɪŋ/noun
making illegally gained money look legal

authorities/əˈθɔrətiz/noun
people or groups that make and enforce rules
Vocabulary Learning

How much do you know?

How much will Alibaba pay to settle problems with U.S. laws?
$400 million
$600 million
$800 million
$1 billion
What type of products were included in the illegal sales on Alibaba's websites?
Fake electronics
Fake medicines
Counterfeit clothes
Stolen goods
Which department announced the deal with Alibaba?
Department of Commerce
Department of Justice
Department of Defense
Department of State
What was the duration of the illegal sales mentioned in the report?
2014 to 2020
2015 to 2021
2016 to 2024
2018 to 2023
What was one issue found with AUS Merchant Services?
High transaction fees
Poor customer support
Problems with anti-money laundering program
Slow transaction processing
What does Alibaba plan to improve to prevent future problems?
Marketing strategies
Customer service
Systems to follow U.S. rules
Product range
Alibaba admitted to stopping many illegal product sales on its websites.
The U.S. DOJ conducted over 40 secret purchases of illegal items.
Alibaba will not work with U.S. authorities in the future.
AUS Merchant Services is part of the Alibaba company.
The illegal sales included only controlled items.
Alibaba will pay $600 million to resolve issues related to illegal sales.
Alibaba admitted it did not stop many illegal product sales on its websites including fake medicines and other controlled .
They didn't stop around illegal sales from January 2016 to December 2024.
The DOJ found problems with AUS Merchant Services' anti-money laundering .
Alibaba said it will improve its systems to prevent future .
Both companies will also work with U.S. in the future.
The Department of Justice (DOJ) announced this .
This question is required
aimee yang
aimee yanghttps://esl-news.com

Test Your Understanding

Start Quiz
Vocabulary List:
6 words · tap to reveal
ON
Accent
settle/ˈsɛtəl/verb
agree to pay or fix a legal problem
admitted/ədˈmɪtɪd/verb
said they had done something wrong
illegal/ɪˈliɡəl/adjective
not allowed by the law or rules
transactions/trænˈzækʃənz/noun
money or business exchanges between people or companies
laundering/ˈlɔndərɪŋ/noun
making illegally gained money look legal
authorities/əˈθɔrətiz/noun
people or groups that make and enforce rules
Vocabulary Learning

How much do you know?

How much will Alibaba pay to settle problems with U.S. laws?
$400 million
$600 million
$800 million
$1 billion
What type of products were included in the illegal sales on Alibaba's websites?
Fake electronics
Fake medicines
Counterfeit clothes
Stolen goods
Which department announced the deal with Alibaba?
Department of Commerce
Department of Justice
Department of Defense
Department of State
What was the duration of the illegal sales mentioned in the report?
2014 to 2020
2015 to 2021
2016 to 2024
2018 to 2023
What was one issue found with AUS Merchant Services?
High transaction fees
Poor customer support
Problems with anti-money laundering program
Slow transaction processing
What does Alibaba plan to improve to prevent future problems?
Marketing strategies
Customer service
Systems to follow U.S. rules
Product range
Alibaba admitted to stopping many illegal product sales on its websites.
The U.S. DOJ conducted over 40 secret purchases of illegal items.
Alibaba will not work with U.S. authorities in the future.
AUS Merchant Services is part of the Alibaba company.
The illegal sales included only controlled items.
Alibaba will pay $600 million to resolve issues related to illegal sales.
Alibaba admitted it did not stop many illegal product sales on its websites including fake medicines and other controlled .
They didn't stop around illegal sales from January 2016 to December 2024.
The DOJ found problems with AUS Merchant Services' anti-money laundering .
Alibaba said it will improve its systems to prevent future .
Both companies will also work with U.S. in the future.
The Department of Justice (DOJ) announced this .
This question is required

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