The enabling mechanism for the shameless misuse by certain factoring companies of Google Adsense sponsored links and Yahoo’s pay per click equivalent is set to get another test, this time in Australian Courts. Today’s The Times of London reports that "the (new) case stems from 2005 when Trading Post, an Australian classified ads magazine, took out sponsored links in the name of two car dealerships from Newcastle, New South Wales. People clicking on the names of the dealerships found themselves on Trading Post’s website."
According to The Times, The Australian Competition and Consumer Commission (ACCC) dropped a case against Trading Post when the publication said it would stop using its competitors’ names in Google sponsored links. However, the watchdog now says that Google “engaged in misleading and deceptive conduct” by allowing Trading Post to buy ads in the name of the car dealerships. The ACCC seeks "legal clarification of Google’s conduct from a trade practices perspective".
Structured settlement industry insiders will recall the Structured Settlements 4Real May expose of Richardson, TX based Annuity Transfers, Ltd. inspired by the discovery that Yahoo sponsored links were being used to divert consumers who clicked on ads, that included pairings of the names of the NSSTA, or members of the NSSTA, and structured settlements, to the Annuity Transfers, Ltd. website.
Those closely monitoring this issue know that there would be a real impact if a Court finds that Google had to take a policing role into the content of the advertisers.
The Structured Settlements 4Real write up on the American Blinds case vs Google may be helpful to readers who would like more information on the spobnsored link issue. Click here to access the June 22, 2007 write up.
This author also believes that requiring ALL factoring companies to be registered to do business in the state of solicitation AND to be licensed under state insurance laws (as is the requirement for viatical providers) would also help as it would subject these companies to the strict advertising rules. The licensing fees charged would support the cost of the regulation.
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