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ARTICLE · 20 MARCH 2013

Business owners - take care when buying sponsored links

Google merely passed on information provided from the advertiser so was not engaging in misleading or deceptive conduct.

AustraliaConsumer Protection

IN BRIEF

This article discusses the much anticipated decision of the High Court in relation to whether Google was liable for misleading or deceptive conduct through its AdWords programme.

In our previous article Google Adwords on Trial: ACCC Establishes Misleading or Deceptive Conduct we discussed the decision of the Full Federal Court, which found that Google was liable for misleading or deceptive conduct as a result of the purchase and use of words associated with a business of a competitor of the Google customer. That decision has been overturned by the High Court.

To recap, when a user typed into the search engine "alpha dog training" the first sponsored link that user would see would be the heading "alpha dog training" but this link would direct the viewer to Alpha Dog Training's competitor Ausdog. ACCC claimed that this, and other similar conduct, constituted misleading or deceptive conduct by Google in breach of the Trade Practices Act 1974 (now the Aust

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