|
Quick Links
Statistics
Total entries in this blog:
Total entries in this category: Published On: Aug 03, 2007 10:46 AM |
ACCC sues Trading Post and Google over sponsored linksIn what it describes as a global first, the ACCC is suing the Trading Post and Google over sponsored links on their websites in 2005 which are alleged to contravene s 52 and 53(d) of the Trade Practices Act 1974 ... According to the ACCC's Press Release, the Trading Post is being sued when the business names "Kloster Ford" and "Charlestown Toyota" appeared in the title of Google sponsored links to Trading Post's website. Kloster Ford and Charlestown Toyota are Newcastle car dealerships who compete against Trading Post in automotive sales. Google is being sued The ACCC is also alleging that Google, by causing the Kloster Ford and Charlestown Toyota links to be published on its website, engaged in misleading and deceptive conduct in breach of section 52 of the Act. Further, the ACCC is alleging that Google, by failing to adequately distinguish sponsored links from "organic" search results, has engaged and continues to engage in misleading and deceptive conduct in breach of section 52 of the Act. It is rather hard to see how the second allegation against Google could succeed if what Google was doiing in 2005 is the same as it does now as "sponsored links" seem to be pretty clearly identified these days. Surely even Australian consumers understand this in this day and age? It is a bit harder to understand what the first complaint against Google and the Trading Post is. The Sydney Morning Herald report, here, seems to suggest that the company names appeared as the title of ads for other companies. If so, that would surely be misleading. In such a scenario, I wonder if Google will have the benefit of the s 85 defence? If the complaint is just that one might do a Google search for, say, Kloster Ford, and the results included a sponsored link to the Trading Post (apparently a competitor?), that shouldn't be any different to any other sponsored link. If the link was sufficiently identified as a sponsored link, how can it be misleading. If the links were not as clearly identified as sponsored links in 2005 as they are now, what's the point in bringing the action? ACCC press release here. Posted: Friday - July 13, 2007 at 09:05 AM | |