Watchdog sues Google

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The Australian Competition and Consumer Commission (ACCC), the Australian equivalent to the Federal Trade Commission in the US, has now launched legal action on Google and the Trading Post, which is owned by Telstra under the Sensis brand.

The ACCC claim has been centres on the way Google handles it’s sponsored advertising. The case, lodged in the Federal Court in Sydney, says that the Trading Post broke the regulations on the Trade Practises Act, after two Google Sponsored Ads saw two companies link to the Trading Post. The two names were Kloster Ford and Charlestown Toyota, both car dealers in the Newcastle Area.

As well, the case also claims that Google has also broken the regulations after it was being deceptive and misleading by publishing both car dealers.

Ironically, only The Australian, The Age and The Sydney Morning Herald have took up the story. No other media company from the US or other countries have not made an effort to write this story up.

This case can also bring forth other implications for other search engines, like Yahoo, who provide Sponsored Search. The ACCC has also said that this case is the first kind in the world.