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Misleading Ads: ACCC Wins Appeal Against Google
theweatherelectric writes "As previously noted on Slashdot, the Australian Competition and Consumer Commission has been involved in a long-running legal battle with Google. Vijith Vazhayil of Delimiter writes, 'The Full Federal Court of Australia has ruled that Google breached the law by displaying misleading or deceptive advertisements on its search results pages. The decision follows an appeal by the Australian Competition and Consumer Commission (ACCC), following an earlier decision in favour of Google. The ACCC had first filed the case in July 2007 in the Federal Court alleging that Google had engaged in misleading or deceptive conduct by publishing eleven advertisements on Google's search results page. The headline of each of the advertisements in question comprised a business name, product name or web address of a competitor's business not sponsored, affiliated or associated with the particular advertiser.'"
When was Google, or search engines in general, ever legally bound to display anything except what ever they wanted to? I'm not saying Google did in fact do what the ACCC claims.. but so what?
Anonymous coward, you decribe google as a search engine. Google is an advertising business. Google earns 98% of it's revenue from advertising. Search is jut their product. It's like saying McDonald's is a hamburger when McDonalds is actually property and fast food franchise business. Because google is an advertising business it is regulated by the laws of the countries it operates in. It's no different to any other business in that regard. And it has properly been found guilty in this instance. We should be protected from advertising businesses trying to mislead us.
I believe it's covered under deceptive advertising laws. Normally the ACCC does good work and while I agree with the vibe of what they're trying to achieve - disallowing a banner to display or reference one product but link to a site selling a competitive product, I think in this case they got the wrong target. I'd much rather them go after the entity that placed the ad.
That's been the traditional approach taken with radio, television and print advertisements.
Google is an advertising company, therefore google must obey the advertising laws of the associated countries. In Australia the ACCC is the agency that chases down breaches of the advertising law. You will find an equivalent in just about every country.