Legal Question in Technology Law in California

Pharmacy Affiliate

I'm in escrow with a seller who is selling a website that is an affiliate to an online pharmacy (re: not a pharmacy itself, just promotional links). The more I read and research the more apprehensive I become. It's a US site, that has affiliate links to a US and UK online pharmacy. Any advice will be greatly appreciated.


Asked on 8/01/07, 6:57 pm

4 Answers from Attorneys

Johm Smith tom's

Re: Pharmacy Affiliate

You should be very careful. It is not worth the risk of getting involved in illegal online activities. There are too many good, legal ideas that need a little money and have legs. Promoting illegal activities is not legal.

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Answered on 8/01/07, 7:16 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Pharmacy Affiliate

Why on earth would you pay money for such a thing? What is it that you are buying? A domain name? A web page with a couple of affiliate links? At best, you are buying a drug bust, assuming the site actually links to an illegal online pharmacy, which I doubt. More probably the site links to some other site purporting to have information on online pharmacies.

You are being scammed on. Either don't send any money, or if you did send money, write it off and develop your own, legal, websites / domains / affiliate relationships / etc.

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Answered on 8/01/07, 7:16 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Pharmacy Affiliate

Every business investment should be preceded by "due diligence," which means taking an extremely inquisitive and doubting stance with respect to every single fact or alleged fact surrounding the proposed investment and grinding away at each supposed fact until it can be proven beyond a reasonable doubt to be true as presented.

For example, if you are buying a business, you have personal interviews with at least two officers of the ten largest customers. You pick the officers to interview; avoid individuals selected by the seller, as they may be his cronies. Find out what they like and don't like about the products they buy from the company in which you may invest. Then ask whether their purchases are likely to increase or decrease in the future. If an increase is forecast, then go wherever you have to go to look for corroboration that this is possible and likely. And on and on.

Deciding whether a business investment is worthwhile or not, safe or risky or a downright fraud, is an art. Answers are found through a combination of relentless hard work in investigating every single aspect of the proposed business, and intuition gained from experience.

To be sure, no business investment opportunity is perfect. All have risks and unanswered questions. If you want certainty, buy guv'mint bonds. But there are a heckuva lot more bad deals being offered than sound investments. The only way to increase the odds in your favor is through lengthy, hard, grinding, muck-raking due diligence.

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Answered on 8/01/07, 9:46 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Pharmacy Affiliate

Here is a story about a would-be internet pharmacy entrepreneur who will be spending the next 30 years in the federal slammer:

http://www.startribune.com/467/v-print/story/1337623.html

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Answered on 8/02/07, 6:50 pm


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