The first trading standards lawsuit against Google
7/13/2007 14:25  Resource:Financial Times  Author£ºRichard Watersin

    An Australian government agency has filed what is thought to be the first trading standards lawsuit against Google , adding to a lengthening list of legal actions around the world.

    The allegations take direct aim at the design of the results pages Google returns in response to a search request, accusing the company of failing to create a clear enough distinction between its ¡°organic¡± search results and the adverts that run alongside them.

    The Australian Competition and Consumer Commission said it had lodged the complaint against Google and one of its advertisers over sponsored links that appeared on the search engine site. The case, brought in federal court in Sydney, was prompted by adverts that were placed on Google by Trading Post Australia, an automotive dealer also named in the suit.

    The regulatory body said that, among other things, it was seeking an order ¡°restraining Google from publishing search results that do not expressly distinguish advertisements from organic search results¡±.

    In common with its design in other countries, Google¡¯s Australian search site returns two sets of sponsored links, or adverts, with its search results. One set runs down the right side of the page, separated by a light rule from the rest of the page and under the words ¡°sponsored links¡± in a lighter typeface. The second set appears at the top of the organic search results, though in a separate coloured box, with the words ¡°sponsored links¡± above and to the right of the results.

    In a statement, the Australian agency said that while the search engine had faced action in the US and elsewhere on trademark issues, it ¡°understands that it is the first regulatory body to seek legal clarification of Google¡¯s conduct from a trade practices perspective¡±.

    The case also takes aim at Google and its advertising customer for using the names of rival dealers to try to attract customers.

          
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