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Not So Lucky: Google Found Guilty by Australian Court Over Deceptive Ads

by Brandon Russell | April 3, 2012April 3, 2012 2:30 pm PDT

Google searchApple isn’t the only company running into legal issues with the Australian Competition and Consumer Commission (ACCC). According to Reuters, Google was found guilty by an Australian court on Tuesday for displaying “misleading and deceptive” ads in its search results.

Between March 2006 and July 2007, the search giant apparently displayed ads for competing businesses. For example, when users pulled up search queries related to Honda Australia, results showed paid advertisements for a competitor named CarSales and claimed the business was linked to Honda. Google argued it was not responsible for the search results, but the court felt otherwise. “It is Google’s technology which creates that which is displayed,” the court said.

As a result of Google’s deceptive conduct, the Mountain View company was ordered to setup a compliance program “to ensure paid advertisements on its search engine did not mislead consumers,” Reuters said.

The ACCC said the ruling sets a precedent for Google and companies who use similar search technology that misleading paid search results will not be tolerated. A Google spokesman told local Australian media the company would consider its options going forward.

[via Reuters]


Brandon Russell

Brandon Russell enjoys writing about technology and entertainment. When he's not watching Back to the Future, you can find him on a hike or watching...

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