Key Points:
If the keyword purchased is a trade mark owned by a
competitor, then the advertiser may well face legal action by the
ACCC and a claim for damages or an account of profits by the trade
mark owner.
In the recent decision Australian Competition and Consumer
Commission v Trading Post Australia Pty Ltd [2011] FCA 1086, the
Federal Court found that Trading Post engaged in misleading and
deceptive conduct by advertising on Google using keywords not
associated with its business. However, the Federal Court dismissed
the ACCC's claims that Google should also be held responsible
for this aspect of Trading Post's advertising strategy.
Advertising on Google
When a user enters a search term on the Google search engine and
clicks on the search button, Google returns two types of results:
"organic" (also known as "free") listings; and
"sponsored links". A sponsored link is basically a form
of advertisement for which a fee is paid to Google. Sponsored links
are
