p2pnet news | product news:- In what’s said to be the first global action of its kind, Google has been accused of misleading and deceptive conduct with respect to its sponsored links.

The Australian Competition and Consumer Commission says Google’s Trading Post, “contravened the Trade Practices Act when the business names “Kloster Ford” and “Charlestown Toyota” appeared in the title of Google sponsored links to Trading Post’s website in 2005,” continues Australian Associated Press.

Both dealerships compete against Trading Post in automotive sales, it says, going on

The ACCC also alleges Google engaged in misleading and deceptive conduct by causing the Kloster Ford and Charlestown Toyota links to be published on the website.

Google also failed to adequately distinguish sponsored links from ‘organic’ search results, the ACCC alleges.

According to The Australian, Google Australia spokesman Rob Shilkin believes the action is, “an attack on all search engines and the Australian businesses, large and small, who use them to connect with customers throughout the world”.

The claims are without merit, “and we will defend against them vigorously,” the story has him saying, adding:

“Steve Ronchi, a spokesman for Sensis, which houses The Trading Post, said while the action related to previous activity, the company still engaged in similar practices.”

The case is listed for a directions hearing in the Federal Court in Sydney on August 21, says APP.

Slashdot it!

Also See:

Australian Associated Press – Consumer watchdog tackles Google, July 12, 2007

The Australian – ACCC takes Google to court over online ads, July 13, 2007

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