UPS to Pay $40 Million for Online Pharmacy Shipping, Will Institute Compliance Program
United Parcel Service will forfeit $40 million in payments from illegal online pharmacies as part of a non-prosecution agreement between the company and the U.S. Attorney Office for the Northern District of California, said the Drug Enforcement Agency in a press release. UPS must also implement a compliance program to make sure that online pharmacies can't use UPS services, the agreement said (here). According to the release, from 2003 through 2010 UPS was on notice that Internet pharmacies were using its services to distribute controlled substances and prescription drugs without valid prescriptions in violation of the law. "Despite being on notice that this activity was occurring, UPS did not implement procedures to close the shipping accounts of Internet pharmacies," it said.
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UPS must add a new online pharmacy compliance officer that reports to the CEO and develops training in this area, according to a description of the compliance program (here). The program must also include an auditor to oversee the implementation of the compliance program, it said. The compliance officer must also make sure that all documentation required through the program is maintained and available for inspection by the auditor and a "designated representative of the Government," it said.