Google off the hook in Australian Competition and Consumer Commission v Trading Post Australia Pty Ltd

The Federal Court has today dismissed a misleading and deceptive conduct allegation  against Google, but has found Trading Post liable in Australian Competition and Consumer Commission v Trading Post Australia Pty Ltd [2011] FCA 1086.

The basis of the allegation was that sponsored Google Trading Post search results referred to Kloster Ford, a car dealer. There was no information relating to Kloster Ford on the Trading Post website. The court found that this was enough to constitute making implied representations as to Trading Post’s association with Kloster Ford.

The ACCC action against Google was based on the fact that Google failed to properly distinguish its organic search results (natural or non-sponsored results based on relevance) from its sponsored results. Ultimately, his Honour Nicholas J found in favour of Google, holding that Google’s sponsored results did not constitute an implied representation that the sponsored result was organic.

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