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ACCC takes Google to court over ads

  Venture Business News  -   POSTED: 2007/07/12 13:52

The Australian competition regulator is taking action against Google in the Federal Court, alleging that the Internet search engine has engaged in misleading and deceptive conduct.
The Australian Competition and Consumer Commission (ACCC) is alleging that Google has breached the Trade Practices Act by failing to adequately distinguish between sponsored links on its website and "organic" search results.It is alleging that in 2005 a search for two Newcastle-based car dealerships would also direct Internet users to the website for a competitor, the Trading Post.

The ACCC is also taking action against the Trading Post. Google says it will vigorously defend the claims that it has been deceptive and misleading.The company says the claims affect the whole Internet industry and will be defended.

The case will first be heard in the Federal Court in Sydney next month. The ACCC says it believes this is the first action of its kind against Google in the world.


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