Google loses Australia advert case

2012-04-03 07:27

Sydney - Internet giant Google was Tuesday found guilty of false and misleading advertising in Australia after a court upheld an appeal by the country's competition regulator.

Google had won a case brought by the Australian Competition and Consumer Commission (ACCC) in September over claims that sponsored links at the top of its search results were misleading to consumers.

But the watchdog appealed in four of the 11 cases and the Federal Court overturned the original decision.

"In our respectful opinion, the primary judge erred in failing to conclude that Google engaged in misleading and deceptive conduct in the four cases," the court ruled.

It said that ads using keywords for Honda, Harvey World Travel, Alpha Dog Training and Just 4X4 Magazine were published by Google and led consumers to rival company websites.

The court ordered Google, the dominant search engine in the Australian market, to pay the ACCC's costs and implement a compliance programme.

The search engine said it was considering its options.

"We are disappointed by the Federal Court's decision that Google should be responsible for the content of four particular ads on its platform," Google said in a statement.

"Google AdWords is an ads hosting platform and we believe that advertisers should be responsible for the ads they create on the AdWords platform.

"We are currently reviewing our options in light of the court's decision."

  • robert.cerff - 2012-04-03 08:09

    Not really enough info on this one. Was this simply a case of the searcher not realising that these weren't the companies they were looking for? Or was there some form of copyright infringement? While I agree Google should protect the intellectual property and branding of a company, surely they can't be held liable for "misleading advertising"? I mean, if I see a misleading ad on tv do I take it up with the company advertising or the broadcaster?

  • skootzie - 2012-04-03 20:14

    Easy Fix: "Google pulls out of Australia and denies access to all Australians" .. then watch the FC cry like a group of girls. I don't see how this is Google's problem at all; their AdWords are generated by search criteria. What is displayed is simply what the user searched for. Really now Aus :/ I believe this is simply a case of Aus FC not knowing / fully understanding how Google's AdWords works.

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